Home prices to see change: Kwek Leng Beng

Kwek Leng Beng, Executive Chairman of City Developments Limited (CDL), expects property price trends in Singapore to change soon.

According to Kwek, in a span of six months, property developers will likely reduce launch prices of private housing projects not situated near MRT stations by approximately five percent, if they wish to increase the number of transactions amid the presence of more cautious buyers.

He added that developers of properties situated near MRT stations should be able to maintain their prices or even increase them marginally by at least one to three percent.

Aside from how economic developments in the Eurozone and US turn out and their impact on Singapore, the movement of private home prices will also depend on local competition.

“If in the vicinity, there are three or four developers selling at the same time, you will definitely have to consider reducing the price if you want to get out earlier.”

Unlike some analysts, he does not see an oversupply in 2013 and 2014. He noted that the government will not likely impose measures that will destabilise the market.

“I think the government is more concerned about public housing and the new (National Development) Minister has taken positive action,” he added.

Source : PropertyGuru – 15 Aug 2011

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