Maybank Kim Eng has adjusted its full-year new home sales projection (excluding ECs) by -30 percent to 9,000 to 10,000 units (from 13,000 to 14,000 units), in a recent report,
On the back of expectations for slightly extended dovish monetary policies, Average Selling Price projections are also recalibrated from a 10 percent decline in 2014 to a 10 to 15 percent decline from mid-2014 to end-2015.
This came about as more developers are adopting a ‘priced-to-sell’ approach to reduce inventory risks, and prospective homebuyers are holding off purchases as more projects are expected to be completed in 2015 and 2016.
Table: Maybank Kim Eng
Additionally, the report expects the continued weakness in the HDB resale market to reduce upgraders’ demand for mass market private homes.
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
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