Singapore’s private landed residential property market to remain muted: analysts
- POSTED: 06 Jan 2014 17:41
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Analysts expect the private landed residential property market to remain fairly muted in 2014, following a 0.1 per cent fall in overall prices last year.
SINGAPORE: Analysts expect the private landed residential property market to remain fairly muted in 2014, following a 0.1 per cent fall in overall prices last year.
Property agency PropNex said the landed homes segment is not likely to see any strong price growth anytime soon.
Prices of landed homes have started to correct since 2012, rising 3.4 per cent after two years of double-digit growth.
The Total Debt Servicing Ratio (TDSR) framework implemented last June has also weakened sales volume.
Real estate consultancy Savills said only 465 units of landed homes were transacted in the second half of 2013, down from 865 units in the first half of the year.
Total sales in 2013 were down 57 per cent from 2012.
Analysts said sales are likely to remain lacklustre this year, and PropNex estimates that overall landed home prices could fall 3 to 4 per cent.
Mohd Ismail, chief executive officer of PropNex, said: “The segment that really feels a little bit more of the stress here will be the semi-detached and bungalows, these are the properties that are (valued at) between S$5 million and S$10 million.
“Therefore, finding the right buyers who qualify, despite all the TDSR, that person who intends to buy a property at S$5 million to S$10 million - his income on a monthly basis will have to be above S$30,000. This is where the property prices will feel some form of resistance."