The Monetary Authority of Singapore's (MAS) latest move to encourage prudence in the home loans market will likely affect not just borrowers but also developers, according to Savills.
Even before the central bank introduced its new rules, the US Federal Reserve hinted at narrowing its quantitative easing by the end of 2013. This has “caused anxiety over the end of an era of easy debt financing at low interest rates”, the consultancy said.
With these in place, market sentiment is looking less vibrant. Consequently, the residential market will likely moderate over the next few months and developers will be more cautious in submitting bids for new sites in the latter half of this year.
“Moving forward, private residential prices are likely to rise marginally until the end of the year, with the mass-market segment taking the lead,” said Savills.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email firstname.lastname@example.org