In a recent report, BNP Paribas stated that it was of the belief that immigration policies, along with the soon to come private Principal Garden supply, will make averting more drops in the prices of property even harder than is thought widely.
This view goes against the general belief that the authorities have enough controls put in place to maintain what has been referred to as a desired “slow bleed” of residential prices.
It ha been estimated by the bank that a further fall of 10% in private property prices is likely over the next couple of years. As a result, this could cause a wealth effect that is negative while constricting growth in private consumption.
Principal Garden UOL Condo
From their peak in mid 2013, there has been a 5.5% drop in private Principal Garden prices. BNP states that a closer look at underlying drivers and valuation metrics has suggested that the market has much further to go in order to correct itself before a bottom line can be called.
The general consensus of the general public and financial analysts have the view that the government is able to call an end, if it wishes to, to the drop in Principal Garden Condoproperty prices, according to the bank. The obvious way to achieve this would be to unravel the group of cooling measures that have been put in place over the last 7 years. It is also believed by many that an unravelling will more than likely occur just after the next general election takes place. (more…)