Wednesday, June 10, 2009

Analysts say residential property prices will take W-shaped recovery


Source : Channel NewsAsia – 10 Jun 2009

Brokerage Nomura said prices of residential assets in Singapore will take a W-shaped recovery, instead of its previous forecast for a U-shaped upturn.

In a research report, Nomura predicts that there will be a positive quarter-on-quarter rise in property prices in the third quarter this year.

This could occur because developers have seized on the recent positive market sentiment to clear their inventory.

But it expects the recovery to be short-lived due to possible rising unemployment and falling rents.

Nomura said significant increases in unemployment due to a weaker economy will temper the current property demand among those looking to upgrade.

It is also maintaining its view that asset prices will bottom next year.


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