Buying demand for private homes predicted to wane

September sales volume to hit 1,000 units.

According to Colliers International, with the TDSR continuing to work through the market, home buying demand is expected to be shaven off. Not only are banks taking a longer time to evaluate and approve loan applications, some homebuyers are expected to be priced out of the market, while others will need to re-evaluate their ability to afford.

Here's more from Colliers:

Some homebuyers are also expected to be drawn to smaller and more affordable units. They will also become more selective, and projects that have positive location attributes will still find favour with homebuyers.

Meanwhile, developers are expected to continue with launches. They could turn more aggressive and many could modify project sales strategies – given that the tried-and-tested sales incentives/schemes to attract buyers, including vouchers, discounts and rental guarantees, among others, are likely to be less effective after the implementation of the TDSR. There could also be some price tweaks by developers to support project sales.

In consideration of the above and barring any unforeseen shocks, property buyers could return to the market in September and developers’ sales volume is expected to hover in the region of 1,000 units.