The private residential market looks to be heading towards a more muted growth trajectory with weak demand, according to PropNex.
Although liquidity remains flushed in the market, the multiple rounds of government measures have effectively tightened credit and the agency believes this should continue to rein in home buying.
PropNex’s CEO Mohamed Ismail Gafoor said the continued cooling measures also make it hard for prices to regain momentum. “The sustained supply and intensified competition among developers will also keep a lid on excessive price growth. This is an opportune time for those considering upgrading,” he said.
Notably, reasonably-priced homes with desirable location attributes will continue to be popular with buyers.
The potential homebuyer base is also expected to shrink further with curtailed demand from upgraders from the HDB market. The purchasing power of these upgraders will be affected by the softening resale prices of HDB resale flats, said PropnNex.
As there will be a sizeable supply of private homes in the pipeline up to 2016, homebuyers will be selective. Additionally, buyers’ fatigue to rising prices has set in and some developers may adopt a softer stance when pricing to entice them to commit.
Credits: Property Guru