Lifeless property market to spill into 2015 upon full scale quantitative easing
Property prices to drop only 6-10% per annum in 2015.
The three-party Catch-22 situation amongst homebuyers, developers and authorities will persist in the coming year.
According to a report by OSK-DMG, should the ECB launch a full scale quantitative easing programme at its next policy meeting on 22 Jan, the lifeless SG property market is likely to roll-over into 2015.
OSK-DMG projects new homes sales (incl. ECs) to hit 7,000-9,500 units and property prices to drop only 6-10% per annum in 2015.
Here’s more from OSK-DMG:
We reiterate that the three-party Catch-22 situation amongst homebuyers, developers and authorities will still persist. Homebuyers are holding back in anticipation of the surge in physical completions in 2015-16 and prospective price declines. Developers are dragging launches, with an eye on government stepping in to reverse some of its anti-speculation measures. From the authorities’ perspective, without a significant drop in property prices, it will be difficult to justify any easing of cooling measures, when prices are in general only slightly off their peaks in 3Q13 (down 4.9%).