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."
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