Prices of new private homes in Singapore should hold steady in 3Q given support from low interest rates and the growth in the city-state's economically active population, Savills says. The median price of new homes had eased 0.7% on-quarter to S$1,144 psf in 2Q, the consultancy notes, citing price competition by developers after government intervention in December. Even so, resale prices, which have risen 4% on-quarter in 2Q, "are poised to rise further as they play catch-up to the recent increase in new sale prices," Savills adds. "Going forward, developers are expected to fast-track their new project launches ahead of any further deterioration in global economic fundamentals and the seventh month hungry ghost festival," it says, tipping new private-home sales to rise to about 2,300 units in July, before falling to about 1,300 to 1,700 units per month in August and September.
Savills sees more headwinds for the high-end home segment, where prices may soften more by another 1% to 2% in the next few months.
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