Home prices continued to fall last year

HDB resale prices dipped 1.6 per cent, but the decline has likely stabilised as values in the fourth quarter actually rose a modest 0.1 per cent.
HDB resale prices dipped 1.6 per cent, but the decline has likely stabilised as values in the fourth quarter actually rose a modest 0.1 per cent.ST PHOTO: ALICIA CHAN

Prices of homes in both the HDB and private markets continued to fall last year, data out yesterday showed. Housing Board resale prices dipped 1.6 per cent, but the decline has likely stabilised as values in the fourth quarter actually rose a modest 0.1 per cent.

Private home prices slipped 0.5 per cent in the fourth quarter, making it a full-year decline of 3.7 per cent. In the private market, the figures may indicate that some buyers are dipping their toes cautiously into the market, but the ongoing stock market volatility may temper some of that enthusiasm if it persists, analysts said.

Market watchers are concerned about the large number of new private homes - estimated to be 22,000 - to be completed this year. These will come as the vacancy rate of the private property market already stands at 8.1 per cent, the highest in a decade.

Landlords of private homes will also be in for a challenging year.

Data showed that private home rents fell by 4.6 per cent last year. Suburban rents of non-landed homes led the decline, falling 5.6 per cent, followed by those at the city fringe, which dropped 4.9 per cent, while core central region rents were down 3.8 per cent.

SEE TOP OF THE NEWS

BUSINESS

A version of this article appeared in the print edition of The Straits Times on January 23, 2016, with the headline 'Home prices continued to fall last year'. Print Edition | Subscribe