The recent set of property cooling measures will likely dampen market transactions over the next few months, said DBS.
Since the longer holding period and purchasing confidence force buyers to re-assess their buying decisions, primary sales volume is forecasted at only 10,000 units for this year.
Property developers are also likely to re-time launches. The overall market sentiment will be negatively affected, especially for speculators, said DBS.
The upgraders’ mass market segment is also expected to be affected by the lower mortgage financing quantum, considering the tendency for higher leverage.
Home prices will likely move between zero and three percent in 2011, ofwith a flattening low- and mid-end prices and slow recovery in the upper end segment, said DBS.