The relaxation of the TDSR for refinancing of owner-occupied properties is unlikely to have any impact on Singapore’s property market, with flat prices and slower volumes likely to continue, according to a Credit Suisse report.
“We maintain our view where primary volumes are expected to moderate to the 13-14,000 levels (15,000 in 2013) while overall prices are expected to be flattish as we are not expecting severe oversupply,” said Yvonne Voon and Anand Swaminathan, research analysts at Credit Suisse.
Specifically, the prime three-bedroom and larger units are expected to face pressure, while mass market properties with good offerings and homes priced below the $1,500 psf mark are predicted to selectively see healthy demand, the analysts noted.
The report added that the changes by MAS are a positive move and shows that the government is willing to fine-tune the measures to meet the needs of the market, but “we do not see this as a prelude to loosening of measures as the objective of the implementation of the measures is to avoid a bubble”.
Under the revised rules, a borrower who bought a residential property before the TDSR came into effect on 29 June 2013 will be exempted from the TDSR threshold of 60 percent provided the property is owner-occupied, does not have any other property or outstanding property loan.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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