Tag Archives: Monetary Authority of Singapore

New regulations lead to fewer choices for home buyers

Posted on 11 Jul 2013 | Comments Off on New regulations lead to fewer choices for home buyers

The new housing loan rules introduced by the Monetary Authority of Singapore (MAS) will severely limit the choices among second-time buyers, according to a Citibank report.

Since the curbs took effect, buyers looking to purchase a second property can only afford a home that is 30 percent more affordable, which was not the case before, the report noted.

Fewer units would be available to these buyers, as they would have to limit their choices to homes where the loan falls within the 60 percent Total Debt Servicing Ratio (TDSR).

Citi noted that Singapore’s household debt has spiked due to mortgages, highlighting that “household debt relative to GDP has risen to about 77 percent, similar to levels recorded before the Asian financial crisis nearly two decades ago.”

Source – PropertyGuru – 11 Jul 2013

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Buyers shift to smaller homes

Posted on 11 Jul 2013 | Comments Off on Buyers shift to smaller homes

The latest changes to the Total Debt Servicing Ratio (TDSR) by the Monetary Authority of Singapore (MAS) will see home buyers turning to smaller units to offset price hikes. The move is also expected to affect volume demand, particularly coming from buyers with higher incomes, according to DBS.

“Based on the URA statistics, 5MTD monthly primary private home sales ex-ECs have dipped 23 percent year-on-year to 8,353 units,” DBS said.

As data is in line with the bank’s estimates, DBS maintains it current projection – a 20 percent decline in volume demand for 2013, with prices stable at -five percent year-on-year.

“A look at primary transactions also showed that buyers have been moving towards small units to offset price increases. Average unit sizes have shrunk 16 percent since 2010 to an average of 961 sq ft per unit in 5M13 while price psf have continued to trickle up marginally.”

DBS expects the trend towards smaller unit sizes to continue, “particularly after this move by MAS”.

Source – PropertyGuru – 11 Jul 2013

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