Where are home prices headed?

Where are home prices headed?

Source: The Straits Times

Home prices are likely to hold their ground despite being pummelled by six rounds of cooling measures, according to most property analysts.

They pointed to low interest rates and a stable employment outlook as factors supporting prices.

They predicted the measures - including last week's new restrictions on loan terms - would take a toll on sales volumes. However, another factor helping to keep prices steady is the strong holding power of developers.

Some contrarian analysts said prices might fall by up to 10 per cent in the next 12 months.

But most agreed that private home prices are likely to continue flatlining instead. They have risen by less than 1 per cent in the first nine months of the year.

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