After the government’s total debt servicing ratio (TDSR) framework was implemented in June 2013, fewer property launches and private home sales were seen in the months that followed compared to any other period in the past three years, according to information compiled by DTZ.
DTZ noted that the latest curbs were more effective than previous cooling measures, specifically those that were introduced in January and December 2011, October 2012 and January 2013.
Nevertheless, the supply of new homes in Singapore is rising with an estimated 25,000 units in 2016, with the OCR (Outside Central Region) accounting for the majority with about 15,000 units, followed by the RCR (Rest of Central Region) at around 7,000 units and CCR (Core Central Region) with less than 5,000 units.
Despite the huge inflow of supply, residential resale prices have already softened in Q4 2013 for the luxury, prime freehold and suburban leasehold segments.
Flash estimates released by the housing board also revealed that HDB resale prices fell in Q3 2013 for the first time since Q1 2009.
However, DTZ is confident that a major price correction is unlikely if there is positive economic growth in Singapore.
Christopher Chitty, Senior Content Producer at PropertyGuru, edited this story. To contact him about this or other stories, email christopher@propertyguru.com.sg