HDB resale prices could drop 10%

It was writen in PropertyGuru.com.sg website that HDB resale prices could drop 10%.
(source : http://www.propertyguru.com.sg/property-management-news/2012/2/32295/hdb-resale-prices-could-drop-10-say-experts)

In the article, property experts shared their view on the HDB flat (public housing) prices in the current Eurozone debt crisis.

There was 'coffeeshop' talk that property prices will dip by 30% this year. Would you believe the rather baseless blind leading the blind talk, or the experts from the property market (as cited in the report above)?


New HDB Flats
The many BTO projects will help first timers, which, a lot are not
able to pay the high Cash Over Valuation (COV) and valuation in the first place. So the HDB's release of more BTO projects will provide first timers with the chance to own their flat, to provide to the demand.

Resale Flats
On the resale market, what may happen when the economy soften further? Valuation won't drop too much. HDB flat valuation is government controlled, not independent to market movement like private properties. So, if valuation comes down, new flat prices will also come down. That is not what the government wants.

However, COV will come down. COV is what buyers are willing to pay on top of valuation. If cashflow is limited, people will not splash so much cash. Sellers may expect, but if the market is not paying, they can't fetch. It will come down slowly but surely. It may even dip below valuation like what happened in the mid 2000s.

30% Dip
If such a big adjustment happens, all properties will be affected, banks will be affected,
economy will slide further. So I don't think this is gg to take place so easily right now. Yes it can, but not so easy.

Post Eurozone Debt Crisis
Propnex CEO said, “Public housing resale prices have gone up by over 80 percent in the last five years".What happened after US Sub-Prime dust settled? In 2006-2007, private property prices shot up drastically. It soften and came down in 2008 and started climbing again after CNY 2009 (with the launch of Alexxis).

Will we see a repeat of big spenders coming into the picture after Eurozone problem is settled and economy recovers? Singapore needs more sound policies to curb foreign speculation.