Following the Singapore government's repeated efforts to rein in home prices, the city state's residential market will come under further pressure, said Lim Ming Yan, CEO of CapitaLand - Southeast Asia's largest developer.
"In the short term, with all the policy measures we see the residential market to be under a bit more challenges, but otherwise it's still a good market for us to be in," said Lim told CNBC on Wednesday.
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Cracks have already begun to show up in the city's residential real estate market, with private home prices declining 0.9 percent on quarter in the fourth quarter – the first price decline in seven quarters.
And market watchers expect the trend to continue, with Piyush Gupta, CEO of the region's largest bank, DBS, forecasting a 10-15 percent drop in prices this year, according to local media reports.