Home prices in the Singapore high-end market has fallen by 15 per cent to 20 per cent, with transactions in the first half of the year dropping 77 per cent from the same period last year. However, it is expected to stabilise at this level.

Most developers bought their properties before the property boom last year, and it is believed they would not have to sell their properties below what they consider is the right price.

Home prices in Singapore have peaked but should not crash with developers and home sellers holding on to their properties. Although condominiums today are not sold out within days of their launch, like how it was during the boom, sales today should settle into a steadier pace, with decent-sized projects taking between six months and a year to sell out.

Deputy chairman of Wing Tai Holdings, Edmund Cheng, speaking at the Forbes Global CEO Conference held earlier this month, said the country’s property market has been affected by the United States sub-prime crisis. He believes that prices would stabilise and would only fall further if the US financial crisis worsens.

According to him, Singapore’s population and foreigners coming here to work will absorb the supply, preventing a potential supply glut in 2010.