{"id":112740,"date":"2019-11-29T17:05:34","date_gmt":"2019-11-29T10:05:34","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-cautions-property-buyers-as-number-of-new-launches-racks-up\/"},"modified":"2019-11-29T17:34:21","modified_gmt":"2019-11-29T10:34:21","slug":"mas-cautions-property-buyers-as-number-of-new-launches-racks-up","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-cautions-property-buyers-as-number-of-new-launches-racks-up\/","title":{"rendered":"MAS cautions property buyers as number of new launches racks up"},"content":{"rendered":"


\n\u00a0
\nProspective home buyers should take extra precaution before\u00a0taking a home loan to finance their property purchase, given the economy\u2019s uncertainty and softening labour market, the Monetary Authority of Singapore (MAS) advised in its annual Financial Stability Review that was released 28 November.
\nIn the review, the MAS\u00a0made reference to the huge supply of unsold units from launched projects, which could spell \u201cpotential downside risks to the property market\u201d. According to the regulator citing URA data, there are 4,377 launched but unsold units (excluding executive condominiums) in Q3 2019, which is double the\u00a02,172 units in\u00a0the same quarter last year.
\n\u201cThis increase will likely be exacerbated in the medium term as developers continue to launch projects on sites arising from the large volume of en bloc sales from 2017 to last year. The increase in the unsold inventory could place downward pressure on prices\u2026 if unaccompanied by a corresponding rise in demand,\u201d said the MAS report.
\nTan Tee Khoon, Country Manager of PropertyGuru,\u00a0believes that while housing loan rates have increased, the MAS report is just another cautionary note for property buyers and investors. \u201cSince the implementation of additional cooling measures last July, we have observed that property prices have moved in tandem with economic fundamentals and motivated sellers would have recalibrated expectations and priced their properties to appeal to prospects looking out for value buys,\u201d he said.
\nRental market to remain robust\u2014for now
\nThe\u00a0MAS also noted a \u201cstability in rental prices\u201d that suggests that occupancy demand is adequate at this juncture to absorb newly completed units. Their caveat: The tepid economic outlook coupled with an expected increase in the supply of completed units in the medium term, could lead to new\u00a0downward pressure on rentals.
\nAs such, the MAS cautions agains\u00a0overleveraging: \u201cInvestors that borrowed at higher mortgage repayments relative to incomes could face difficulties meeting the repayments on their investment properties,\u201d the regulator warned.
\n\u00a0
\nBuyer preferences skewed: MAS and PropertyGuru
\nMAS also explained that while there were relatively healthy sales recorded in some project launches over the past two quarters, this was mostly because of specific features of those projects, such as location attributes, an observation echoing the Q3 2019 PropertyGuru Property Market Index.
\nIn the PropertyGuru report, Tee Khoon\u00a0pointed out that two-thirds (66%) of the 3,214 new sales for uncompleted private properties in Q3 2019 came from just 10 projects. Seven of out these 10 projects were mega-scale (more than 1,000 units), whereas none fell below 700 units.
\n\u00a0<\/p>\n

\u00a0
\nAnother observation could be drawn from buyer behaviour in Q3 2019. \u201cThe private property market, while showing encouraging signs on the surface, do not seem to be moving in one direction,\u201d observed Winston Lee, Regional Head of Special Projects at PropertyGuru.
\n\u201cNot only are the bigger new launch projects getting a disproportionate share of the pie, resale private properties seem to be increasingly side-lined by buyers,\u201d he said.
\nMAS noted that the volume of private home resales also remained moderate in comparison to levels before the entry of the cooling measures. Specifically, overall transaction volumes for the past four quarters dropped 32% compared to the 12 months preceding the cooling measures introduced in July 2018, as resale activity remained muted.
\nRECOMMENDED ARTICLE:\u00a0Is The \u2018Wait-And-See\u2019 Property Market Finally Over?
\n\u00a0
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…MAS cautions property buyers as number of new launches racks up<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 Prospective home buyers should take extra precaution before\u00a0taking a home loan to finance their...<\/p>\n","protected":false},"author":1,"featured_media":112741,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-112740","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2019\/11\/condo-sales-q3-2019.png?fit=1260%2C1315&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-tko","jetpack-related-posts":[{"id":8928,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/its-crunch-time-for-sg-developers-before-the-buyers-stamp-deadline\/","url_meta":{"origin":112740,"position":0},"title":"It\u2019s crunch time for SG developers before the buyer\u2019s stamp deadline","date":"March 23, 2016","format":false,"excerpt":"\r Developers are confident that they can dispose their unsold units in time Alex Residences in Redhill has 173 unsold units Some developers in Singapore are optimistic they can sell all the remaining units in their private residential projects before the stipulated deadline, even if they don\u2019t offer huge discounts,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":86928,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/up-to-29-new-launches-offering-14200-units-for-rest-of-year-report\/","url_meta":{"origin":112740,"position":1},"title":"Up to 29 new launches offering 14,200 units for rest of year: report","date":"May 2, 2018","format":false,"excerpt":"\r Is the upcoming supply excessive and will it result in an overheating housing market?\u00a0 Up to 29 private residential projects could be launched between the second and fourth quarters of this year, supplying about 14,200 new units and raising concerns of an overheating housing market, according to a report\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":114670,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/rising-number-of-unsold-invetories-give-buyers-the-upper-hand-cbre\/","url_meta":{"origin":112740,"position":2},"title":"Rising number of unsold invetories give buyers the upper hand: CBRE","date":"March 3, 2020","format":false,"excerpt":"\r The increasing number of unsold units coupled with the COVID-19 outbreak will see buyers having the upper hand.\u00a0\u00a0 Buyers in Singapore are seen to have the upper hand in the private residential market this year due to the rising number of unsold inventories, reported The Straits Times. Around 40\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":104197,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/unsold-private-homes-in-the-pipeline-rose-to-34467\/","url_meta":{"origin":112740,"position":3},"title":"Unsold private homes in the pipeline rose to 34,467","date":"February 20, 2019","format":false,"excerpt":"\r The significant increase occurred as the Strata Titles Board gave its nod to more collective sales. The number of unsold private residential units in the pipeline here almost doubled from 18,891 units at the end of 2017 to 34,467 units by 31 December 2018, revealed a recent report from\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":20919,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/tepid-sales-recorded-at-northwave-ec\/","url_meta":{"origin":112740,"position":4},"title":"Tepid sales recorded at Northwave EC","date":"July 11, 2016","format":false,"excerpt":"\r Northwave will be the first EC to have an indoor badminton court cum function hall. Source: Hao Yuan Investment Northwave executive condominium (EC) saw 20 units sold during its first day of bookings last Saturday (9 July), despite receiving 240 e-applications, reported The Business Times. Consultants attributed the project\u2019s\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":108674,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/unsold-residential-inventory-rises-above-long-term-average\/","url_meta":{"origin":112740,"position":5},"title":"Unsold Residential Inventory Rises Above Long-Term Average","date":"July 3, 2019","format":false,"excerpt":"\r Unsold residential inventory in Singapore has continued to increase, hitting 37,800 units (including executive condominiums) by the end of the first quarter of 2019, reported Singapore Business Review citing OCBC Investment Research. The figure is way above the long-term historical average of 32,400 units registered since Q1 2007. And\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/112740"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=112740"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/112740\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media\/112741"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=112740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=112740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=112740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}