Singapore property prices are set to hold up firmly in the 3rd quarter of 2013 despite transactions falling to record low due new measures by the Singapore Government.
This is what analyst has expect ahead of the release of 3rd quarter property sector flash estimates from the Urban Redevelopement Authority of Singapore (URA)
Even thought Residential Property Prices are set to increase to record levels, analyst are predicting transactions to drop to record low due to the implementation of the Total Debt to Service Ratio (TDSR).
TDSR framework was introduced in June this year to check how much property buyers can loan given their current financial obligations. The current TDSR is set as 60%. This means that banks need to check if a borrower’s total repayments of car, student or mortgage loans do not exceed more than 50% of their gross income.
Analyst are predicting that TDSR framework will have a significant impact on new home sales as buyers hold back on purchases due to lower quantum that can be loan from the bank. This might essentially affect The Hillford at Jalan Jurong Kechil sales due to the insufficient loan from the bank.
Mr Mohd Ismail has attributed record high property prices with record low transaction volume due to land prices were bid high by the developers and TDSR framework that prevent buyers from buying.
Interestingly, the prices for The Hillford will be 20% cheaper than its surrounding condos as it is a 60 year leasehold development. Analyst will be interested to watch how the launch will progress given that many buyers with TDSR difficulties in getting a loan will be looking at The Hillford which has essentially less quantum