The first few months of next year will be the best time for prospective buyers and investors to enter the luxury residential property sector, according to Colliers Jardine.
The property consultant's conclusion is based on the prediction that the economy will recover in the second half and that the low interest rate environment will continue. Property prices are likely to see marginal growth next year despite more downward pressure in the first half.
Colliers said luxury residential prices had fallen more than 10 per cent this year and rental yields had edged up continuously despite easing interest rates.
The unusually wide gap between rental yields and interest rates had been one of the main attractions for luxury property investments.
It said that next year, interest rates would not be the prime focus as further cuts were unlikely.
Instead, the United States economy and local deflation would take centre stage.