With property prices on the rise since 2005, the housing market will likely see a price correction, said Wing Tai’s Chairman Cheng Wai Keung.
Speaking to the media at the company’s full-year results briefing, Cheng noted that “the chances of the market turning this year are quite high. If it doesn't turn down this year, (the chances of this happening) next year will be even higher”.
He cited several factors which could lead to a correction and an increase in interest rates. These include the looming possibility of a supply glut and the government's implementation of cooling measures and curbs on loans.
“I'm more for the last measure (of a 60 percent total debt servicing ratio)...This helps to weed out the weaker demand or buyers who are financially weaker and might rush into the market even though they may not be able to sustain repayments on the loan,” Cheng said.
Meanwhile the group plans to take an opportunistic approach when buying residential development sites in Singapore.
“But judging from the land available for the next six months, plus the price of land at this level, we most probably will have a more wait-and-see attitude,” added Cheng.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email firstname.lastname@example.org