Hello Prince. Property prices is cyclical and are very much influenced by economic condition of the country, government policies, development costs, demand and supply, bank lending policies and interest rates etc.
Currently the factors affecting the demand on properties are bank lending policies to curb over speculation and caution by investor buyers.Prices will be badly affected if the country goes into prolonged recession and when bank interest rates are too high for most people to be able to afford or sustain their loans. Currently, some owners of properties are reducing their prices because they are not able to rent out their units or they have other use of the capital. Certain types of properties and locations that are attracting less demand will see a drop in pricing and not across the board as yet. Some buyers see this as a window of opportunity to purchase property at lower pricing. The awareness to buy properties to hedge against inflation is increasing by the day and this contributes to the general demand.
David Wong
Principal
QUANTUM real estate
mobile:
+60193330573
Read More
