Oct 1, 2013
Singapore’s private residential property index saw a
moderate climb of 0.4 percent to reach 216.2 in Q3 2013, revealed flash
estimates from the Urban Redevelopment Authority (URA).
But there are indications that private home prices in all
segments are on the decline following the recent introduction of the Total Debt
Servicing Ratio (TDSR) framework.
The Core Central Region (CCR) and Rest of Central Region
(RCR) bore the brunt of the various rounds of cooling measures, with prices
slipping 0.5 percent and 1.1 percent respectively.
On the other hand, the Outside Central Region (OCR) posted
the highest increase in non-landed private home prices at 2.1 percent, but this
is still lower than the previous quarter’s uptick of 3.8 percent.
Mohamed Ismail, CEO of PropNex Realty, noted that the TDSR
has reduced the purchasing power of some buyers and slowed down the buying
process. It has also softened demand since it affects buyers with existing
mortgages.
“However, projects with good location attributes and
attractive price offers would be enticing draws for prospective buyers,” he
added.
“Moving forward, we expect the mass market segment to remain
resilient as they are well-supported by genuine upgraders. We are cautiously
optimistic that private property prices could rise by 2.5 percent for the whole
year, with OCR properties to rise by between eight to nine percent. With more
launches expected in the last quarter this year, we expect a healthy demand as
long as developers priced them right.”
Info courtesy - PropertyGuru.com.sg
