If you have been following the blog, you may recall a prediction that I made a while back in August 2012 with regard to the residential property market, as measured by the URA housing price index. The prediction was for prices to rise for a couple of years from the beginning of 2012, and for prices to stagnate thereafter. Now that the first period of the prediction is over, let’s take a look as to where the market is now.
So far the prediction is quite accurate, with the pricing index up year-on-year. At the end of 2013, it looks like the cooling measures have taken hold, together with the general buyers’ fatigue associated with persistent high prices, leading to a small dip of about 1% from 3Q13.
Going forward, I would expect the same sort of lethargy to continue, with a slight downward bias from the knock-on effects of the large supply of HDBs coming online bringing down public housing. All in all, looking really good for my prediction. We shall revisit this again at a later date.
Centauri78 is not a licensed financial advisor. The information contained here is purely personal opinion, and whilst I make every attempt to ensure the accuracy and reliability of the information, this information should not be relied upon as a substitute for formal advice or as basis for investment.