The analysts say mass launch prices have hit 2007 peak, and may stagnate
LAUNCH prices for new private homes rose 10 per cent and 18 per cent in prime and mass districts respectively in the first half of 2009, according to UBS Investment Research.
On the back of this, analysts Regina Lim and Michael Lim now expect prime prices to rise 18 per cent from here to 2007 peak by end 2010, as interest continues to improve and foreigners start to buy. However, luxury prices are not expected to reach the $4,000-$4,500 per square foot (psf) levels seen in 2007. By contrast, mass launch prices have reached the 2007 peak due to fervent buying by locals and prices could stagnate at current levels, the analysts said in an Aug 24 report: ‘For mass market launch prices, we believe they could stagnate at current levels after rising around 20 per cent in 2009.’
UBS’ research also showed that most of the demand for private homes this year came from local buyers. In the first seven months of 2009, Continue reading
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