Study says home prices could fall 30 per cent by 2040, but analysts say investment and immigration flows will support prices, mitigate effect of ageing, less dynamic population
IT is a hypothesis that could colour the common perception of the viability of property as a long-term asset to hold in Singapore:
A recent study by the National University of Singapore's Institute of Real Estate Studies predicts that Singapore home prices could fall by about 30 per cent by 2040 as the society ages and the old-age dependency ratio rises.
But economists and real estate consultants argue that this scenario may not come to pass because of investment and immigration flows. They say that the study by and large approaches residential property as a consumption good, ignoring the investment part of the equation, which should not be the case, given Singapore's status as a global city.