Singapore’s primary housing markets will see prices decline in the next 12 months due to a combination of higher mortgage rates and recent government policies, revealed a Jones Lang LaSalle report. The luxury prime market could witness a four to six percent price fall, while the typical prime market may post a two to four percent correction. The consultancy expects “continued interest in fixed rate mortgages and, as reported in last quarter’s publication, a growing number of property buyers are looking to lock in fixed repayment rates to hedge against any rate increases”. As such, demand and prices in the high-end segment will be affected, especially by higher holding costs and the rising Singapore Interbank Offered Rate (SIBOR). The report added that demand for resale condos in the prime market slipped 3.3 percent in the second quarter to 171 units from 177 previously. The decline was due to cooling measures which dampened foreign demand, as well as the introduction of the Total Debt Servicing Ratio (TDSR). “We expect prices and transaction volumes are likely to dip in the near term as a result of tightening credit availability,” Jones Lang LaSalle said. As for supply, last quarter saw the completion of two projects which delivered 207 units, down 43 percent from Q1 based on data from the Building and Construction Authority (BCA).
Posted on: Wed, 21 Aug 2013 09:44:07 +0000
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