Going by the latest private home sales figures — which rose 55 percent to 745 units in April — home buying is likely to improve as buyers get used to the more stringent home loan rules, said media reports.
According to Thomas Tan, Director of Remax, “People are getting used to the TDSR, since it is probably here to stay, and they are improving their financial portfolio to manage the TDSR.”
Introduced in June last year, the Total Debt Servicing Ratio (TDSR) framework requires banks to ensure that borrowers’ total monthly debt repayments, including car loans and other mortgages, do not exceed 60 percent of their gross monthly income.
Propnex Chief Executive Mohd Ismail believes the dust has somewhat settled, given that the TDSR has already been in play for ten months.
He said, “We expect new-sales volume to improve in the coming months, on the back of more new launches and fairly positive market interest.”
MCL Land’s Lakeville in Jurong and CapitaLand’s Sky Habitat in Bishan were among the best-selling projects last month.
Eugene Lim, Key Executive Officer at ERA believes there is high competition among developers pushing new projects, as there are limited buyers and leftover stock is weighing on the market.
However, he added more buyers will enter the new-sales market as prices stabilise.