Analysts believe that the overall resale prices of private homes may continue to fall in the near future, mainly because of the year-end into the real estate off-season, market demand may slow down, coupled with mortgage rates will remain high, but whether the decline in resale prices will form a trend, it is not yet possible to determine.

According to the latest estimates released by the National University of Singapore's Institute of Real Estate and Urban Studies on December 1, the overall private resale price of non-landed private housing price index (NUS SRPI) fell 0.7% to 172.5 in October from a year earlier, with the index rising continuously from 152.3 in October 2020 and once flat at 165.6 in February this year.

September increase after adjustment from the original estimate of 0.5% up to 0.6%

After adjustment, the rate of increase in September this year was revised upward from the original estimate of 0.5% to 0.6%.

The government implemented the latest round of real estate cooling measures on September 30, lowering the borrowing limit for home buyers and requiring private homeowners to wait 15 months after selling their homes before they can buy resale HDB flats.

ERA's Head of Industry Research and Consulting, John Mak, pointed out in an interview that the fall in private resale prices in October was believed to be an immediate market response to the above cooling measures.

In addition, November and December are the low season for the real estate market, so resale prices are likely to continue to fall.

According to real estate analyst Wong Gah Sing, private resale prices have risen to a record high before October, affecting buyers' affordability.

Since the implementation of the cooling measures, buyers have become cautious, price-sensitive and finicky.

Sellers are being more realistic in their pricing and they don't want to scare away potential buyers.