http://www.straitstimes.com/archive/...rther-20150101

COMING UP IN 2015...: Fears

Resale flat prices likely to fall further

Published on Jan 1, 2015 12:26 AM


AFTER a sluggish year in the public housing resale market, prices are expected to continue their slow slide into 2015.

But the number of deals closed might pick up, as buyers are lured back by low prices.

Experts' predictions range from stagnation to a fall of 5 per cent to 8 per cent for the full year, though this depends on whether cooling measures are lifted. So far, the Government has stuck to its position that it is not yet time to do so.

Larger forces such as the country's and global economic growth as well as interest rates could also weigh down on prices. Lower prices could be good for buyers but would erode home owners' wealth.

Buyers' return to the resale market might also be encouraged by a smaller supply of new flats.

About 16,000 Build-to-Order units will be launched in four batches, including the first housing projects at Bidadari.

On the policy front, National Development Minister Khaw Boon Wan has said he will continue finding ways to help couples live near their parents. He added that with the backlog of demand from first-timer families having been cleared, there will be a greater focus on singles and families who do not yet own a flat and are renting.

For current flat owners, changes to the Lease Buyback Scheme will kick in on April 1. Elderly flat owners will have more flexibility over how many years of their lease to sell back to the Government. Four-room flats will also become eligible.

JANICE HENG