RHB adjusted its forecast for residential home prices in Singapore from 0% to 3%, to between 5% to 7% this year.
RHB expects residential property prices in Singapore to increase this year, growing between 5% and 7%, revising its initial forecast of a 0% to 3% growth, reported Singapore Business Review (SBR).
RHB explained that the revision comes as it sees a resilient job market with declining unemployment levels, as well as a reduced probability for the government to introduce cooling measures.
But while it expects home prices to increase, RHB maintained its forecast for its new sale volume for this year at 9,000 to 10,500 units.
From 16 May to 13 June 2021, the city-state was placed under Phase 2 (Heightened Alert) following a resurgence of COVID-19 cases. This resulted in a significant drop in the capacity of show flats. Buyers allowed in resale flat viewings were also limited to groups of two only.
RHB noted that the move “helped cool down some of the frenzy” within the residential market.
“The tightened measures however have lowered the near-term risk of additional stringent cooling measures in our view as the government is likely to adopt a cautious approach amidst current uncertain market conditions,” it said as quoted by SBR.
Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: firstname.lastname@example.org