Sales of private homes in Singapore could fall to as low as 12,000 units – down from the 14,980 seen in 2013 – according to research from Barclays.
In its investment statement the research arm of the financial institution said: “"Barring any rollback in policies, we now expect 2014 volumes to fall 20 percent year-on-year to 12,000 units, as the TDSR rules in place since June 2013 continue to bite, and as buyers become more cautious on the abundant supply pipeline.
"We maintain our negative stance on the Singapore residential sector, as we expect prices to fall 5 percent in 2014 and by another 5 to 15 percent in 2015 as interest rates rise, and the vacancy rate could reach an unprecedented 9.9 percent by 2016.”
Barclays has said previously that it does not expect a rollback of cooling policies anytime soon, "as home prices are still 61 percent above their 2009 levels, and GDP, employment and interest rates still appear favourable."
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
Recent stories you may have missed:
MUST READ: Get the GuruView with PropertyGuru’s 2014 Market Outlook eBook
Singapore government to watch HDB resale market
HDB resale prices fall for the first time in eight years
Chinese are now top non-Singapore property buyers
If you have a property story you want us to publish email: andrew@allproperty.com.sg