We expect continuous pressure on prices across the board, with ABSD to be levied on some projects with unsold units starting this year. However, that impact will also be minimal given the resilience of the market. Private home prices will be supported by higher land costs, shrinking unsold stock and the still-healthy balance sheets of developers. That said, a challenge to the market this year is the potential rise in interest rates, which could cause a drag on secondary market prices.
We expect an overall 0 per cent to 2 per cent price drop this year, lower than the 3 per cent price fall in 2016."
Disclaimer:
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
