Private home prices have only dropped marginally in recent years, data shows.
Analysts see the recent increase in new home sales as a double-edged sword for investors, as it makes the easing of property cooling measures more unlikely, reported Singapore Business Review.
In fact, RHB believes the government may take a more cautious approach in removing the property curbs, following the strong demand seen at some new and existing projects after prices were adjusted.
The Urban Redevelopment Authority’s property price index shows that property prices have only dropped by nine percent since its peak in Q3 2013.
Moreover, current property prices are still 48 percent higher than during the 2009 Global Financial Crisis.
As such, any premature withdrawal of the measures may cause prices to jump, said RHB.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
