Home prices 'likely to remain stable'

Home prices 'likely to remain stable'

Home prices are likely to flat line over the next six months, with falling interest from foreign home buyers eliminating the need for more cooling measures, according to CapitaLand bosses yesterday.

President and chief executive Liew Mun Leong said the additional buyer's stamp duty of up to 10 per cent introduced in December last year has met its aim of dampening foreign demand.

Foreign buyers and companies accounted for only 7 per cent of the private home market in the first half of the year, down from 20 per cent for all of last year.

Mr Wong Heang Fine, chief executive of CapitaLand Residential, told the meeting that "strong fundamentals" will keep home prices stable for this half of the year.

Developers sold almost 12,000 new homes in the first half of the year, 48 per cent more than in the same period last year.

But CapitaLand sold just 259 homes here in the first half, with a total value of $467 million, in projects such as Sky Habitat, The Interlace and d'Leedon. Mr Wong said new units will continue to be released at its launched projects, which should lead to more sales in the second half.

Broadly, it will be looking to build up its residential land bank, particularly in Singapore, but also in China, in the value-homes segment. It will also look at developing or acquiring more malls.

Source: The Straits Times – 2 August 2012