Home prices, down 33% from a 1996 peak, could fall a further 5%–10% following a dramatic revamp announced last week of the state-run Central Provident Fund (CPF), according to an analyst at ratings agency Standard & Poor’s (S&P).
This year alone, new house sales could drop to about half the 9,500 units recorded in 2002 following the overhaul of the 48-year-old CPF, which many residents use to fund mortgages, said Greg Pau, director of S&P’s corporate and infrastructure ratings group.
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