Oct 1, 2013
HDB's flash estimate of the Q3 2013 Resale Price Index (RPI)
is 205.1, a decline of 0.7 percent over the second quarter this year. This is
the first decline since Q1 2009.
Responding, Mohamed Ismail, CEO at PropNex Realty said:
“This reversal of price growth is expected given the slew of measures announced
this year such as the TDSR (Total Debt Servicing Ratio), reduction of the MSR
(Mortgage Servicing Ratio) and the reduction of the maximum loan tenure, which
have all impacted buyers’ purchasing power.”He noted that the reduction of the MSR to 30 percent of a borrower’s gross monthly income has affected price affordability.
“Demand has also been sapped by the release of new BTO flats
and PRs having to fulfill (the) 3-year requirement before they can purchase a
resale flat, resulting in the resale market effectively serving only the
upgraders and limited PRs now, resulting in the weakening of price and volume
of transactions. It is also believed that the larger oncoming supply has
created a ‘balancing effect’ in the resale market—gradually softening the price
growth to a more sustainable level,” Ismail added.
Looking ahead, HDB resale price growth for the entire year
is expected to be less than one percent to “possibly a negative growth”,
reckons Ismail. “Moving into 2014, the HDB resale market can expect negative
price growth possibly at the range of negative three to negative five percent.”
Meanwhile, the housing board is on track to launch 25,000 BTO flats this year. To date, it has released 20,161 units under BTO exercises and 4,455 balance flats.
Next month, HDB will offer 4,950 new flats for sale and an
additional supply of about 3,000 balance flats will be made available.
Info courtesy - PropertyGuru.com.sg
