The private property market could face some headwinds over the next few months, with sales volumes and housing prices moderating a little, said property giant CapitaLand.
“Prices and sales volume of Singapore residential property are expected to moderate as the cumulative impact of the various property measures continue to be played out in the coming months,” it added.
CapitaLand Singapore Chief Executive Wen Khai Meng, said: “It’s difficult for us to make a call at this point, but it may flow to lower volumes. We have no crystal ball.”
These comments come a month after the Monetary Authority of Singapore’s (MAS) total debt servicing ratio (TDSR) framework was put in place to encourage financial prudence.
“On the whole, our households are still fairly prudent”, with the Singapore market still fairly resilient despite the new policies, said Lim Ming Yan, Group Chief Executive of CapitaLand.
While Singapore households are considered ‘fairly prudent’, it came as no surprise that up to 10 percent of borrowers are overstretched, said Lim, adding that the proportion of borrowers at risk is expected to rise by up to 10 to 15 percent should mortgage rates climb up three percentage points.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
Related Stories:
Prices continue to rise despite cooling
Marina Bay condo close to sold out