RESIDENTIAL property prices, having fallen about 30 per cent in the past 18 months, are near bottom and will stabilise, according to Centaline Property Agency. With interest rates likely to fall and relaxed mortgage policies, the agency expected investing interest to rise and a limited downside for the home market. Centaline said in its latest quarterly report that developers were unlikely to dump flats at big discounts, which would improve market sentiment. While property sale transactions were down, the report said the increased activity of the leasing market reflected the underlying housing demand, and rents could rise. In the third quarter, the property market performed badly, dampened by negative news and developers' price-cutting sales. While predicting a stable residential market, Centaline expected office, retail and industrial property prices and rents to drop further.