Chart of the Day: Housing loans fell faster than expected in 2013
Slowdown to persist in 2014-2015.
According to Maybank Kim Eng, the deceleration in housing loan growth (2013: +9.5%; 2012: +15.9%) reflects a weaker property sales and a higher base factor. However, the pace of deceleration, especially that over the last three months of 2013, was sharper than expected.
Here's more:
We expect the slowdown to persist in 2014-2015. Prospective growth will be driven by loan drawdowns from newly completed homes that were sold in 2011-2012. Based on URA data, a total of 19,302 units will be completed in 2014 and 18,278 units in 2015.