Business

Private housing market may bottom out this year

Prices fell across the private residential, commercial and resale public housing segments in the first quarter, with the losing streak for private homes extending to 14 quarters - the longest slump in 13 years.

But analysts said the slower pace of decline and brisk sales in the first quarter suggests that the market could bottom out this year. Overall private home values dipped by 0.4 per cent from the fourth quarter to the first - led by the landed property segment - data from the Urban Redevelopment Authority showed yesterday.

The price drop was smaller than the 0.5 per cent fall from the third quarter to the fourth.

Private home values had fallen by 11.6 per cent as at March 31 since a peak in the third quarter of 2013, as cooling measures tamed demand.

Sentiment has turned positive, owing to easing of cooling measures last month and an improvement in the economy, drawing buyers back.

The first quarter saw the highest private home sales in 15 quarters at 5,202 units - comprising 2,962 new sales excluding executive condos and 2,170 resale transactions.

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