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.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email firstname.lastname@example.org