Prices of mass market homes are expected to hit bottom by mid-2016, falling by another 10 percent amid rising mortgage rates, revealed media reports citing Barclays.
Barclays said in a report that it expects prices of mass market projects to continue declining on the back of large supply entering the market between 2014 and 2018.
“However, we expect new supply completions to dip beyond 2018 due to the tight Government Land Sales policy since 1H2012 and the low level of developer sales since the Total Debt Servicing Ratio (TDSR) policy was introduced in June 2013,” stated the report.
“We see the likelihood of a reprieve from the unwinding of property tightening measures happening after the general election, which has to take place by May 2016.”
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
