Private home prices to soften to 8%: report
Rising interest rates and financing situations will impact prices.
Amidst rising interest rates and tighter financing conditions, private residential prices are expected to soften for the year of 2022 compared to 10.6% in 2021, Edmund Tie & Company, said.
As for primary sales activity, it will likely moderate to 10,000 units due to the impact to the home sales.
New home sales will also bear the brunt of tight labour market conditions whilst the rising inflation will encourage property buyers to seek out property as an effective hedge against inflation.
“In addition, the continual sombre economic data points and forecasts are likely to help rein in unfettered demand,” read the report.
The overall property market is still backed by a tight labour market, ongoing economic revival, and demand-supply dynamics.