Home prices to fall 20 percent: Morgan Stanley

Headline Home prices to fall 20 percent: Morgan StanleyMediaTitle The Business TimesDate 08 Dec 2011 Color Black/whiteSection Singapore News Circulation 35,050Page No 12 Readership 108,000Language English ArticleSize 159 cm²Journalist N/A AdValue S$ 641Frequency Daily PR Value S$ 1,922 Home prices to fall 20 Morgan Stanley By MICHELLE TAN some 77 per cent year on year to show signs of cold feet as supply diner who expects vacancy rates But that does not mean that the piles up Findings from the survey to escalate next year PRICES of residential properties are expected to take a 20 per cent pricing of mass market properties noted that sentiment among devel Together with other factors haircut according to a report is will hold up forever opers has declined from just over such as a lacklustre gross domestic sued by Morgan Stanley Research Highlighting that the challenge 5 5 whereby 10 is the most posi product outlook and weaker popu Though new home sales have is in gauging the magnitude of the tive and 0 the most negative at lation growth as expatriate num been holding up relatively well correction Mr Gardiner noted the start of 2011 to 3 4 as at end bers dwindle it seems the bears with 1 632 units being sold in the that the segment s pricing is expect September have successfully taken over the month of October it is key to note ed to come under pressure over the We expect 12 000 units of new reins of the domestic residential that the bulk of transactions stem next few months and predicts pric supply private residential in 2012 market from the Outside Central Region es to be down 20 per cent by the and 13 000 in 2013 including For now though prices in the OCR implying a more mass mar end of 2013 planned but not yet started physical market may appear seem ket type driven demand Exacerbating the situation is projects This compares to our in ingly resilient one should bear in Commenting on the issue in growing inventory levels which cremental demand expectations of mind that values could be buoyed house analyst Sean Gardiner said have since risen above 200S s 4 000 private units per year al by a variety of factors such as low This supports anecdotal evidence peak with 5 394 unsold units as at though if prices fall enough we interest rates high liquidity in the from the industry that demand for end October Intact according to a could see some higher end Hous banking sector and a spike in de the mid to high end of the market real estate survey carried out by ing and Development Board HDB mand of properties from foreign is slow In fact sales in the Core the National University of Singa demand trickle through into the pri ers especially the Chinese as high Central Region CCR are down pore NUS developers are starting vate market pointed out Mr Gar lighted in the report

Home prices to fall 20 percent: Morgan Stanley

by Perry Lai on Dec 09, 2011

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Home prices to fall 20 percent: Morgan Stanley — Document Transcript