Analysts don’t expect private property prices to tumble, despite fall in Q1 based on prelim data

New Flash estimates from URA for the first Quarter of 2020 showed Prices of resale private homes dropped 1.2% against fourth Quarter 2019, partly due to the influence of Covid-19. However analysts cite 4 supporting factors that should prevent a large decline in prices.

First, the Resilience Budget introduced measures for individuals. Cash flow concerns such as high interest unsecured loans can be converted to lower interest term loans, and homeowners with mortgages have an option to delay the interest or entire mortgage payments to ease their current cash flow situation.

Second, jobs are being supported by wage and liquidity assistance provided to Companies, to encourage employers to retain their workers.

Third, private housing developers selling new launch units would adopt strategic pricing to continue to attract buyers during this period.

Fourth, Total Debt Servicing Ratio (TDSR) limits already in place since 2013 have capped total levels of housing and other debt for each household at a manageable amount based on income.

Source: https://www.todayonline.com/singapore/analysts-dont-expect-private-property-prices-tumble-despite-fall-q1-based-prelim-data

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