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 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 will prevent a large decline in prices.

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

Second, jobs are being supported by wage and liquidity assistance provided to employers, to defray the cost of retaining workers.

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

Fourth, current Total Debt Servicing Ratio (TDSR) caps already active from 2013 have ensured property purchasers have taken manageable levels of housing and total debt even prior to the Covid-19 situation.

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

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