PRIVATE home prices are on a downslide, but their decline is unlikely to have a major impact on the economy, according to a new report by Citibank.

More than 80 per cent of Singaporeans live in public housing anyway, which is still on a price uptrend, it said. HDB resale prices rose 4.2 per cent in the third quarter, while prices of apartments, condominium units and landed homes fell 2.4 per cent. This was the first decline in four years.

Even private home dwellers who see their property values dip are unlikely to cut back on spending, said the bank. Real estate wealth here is illiquid compared to other countries - meaning it cannot be easily converted to cash - so a fall in home values will have little effect on how much consumers spend.

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