According to DBS, following the implementation of TDSR limit and increasing completions of new homes, both private and public resale home prices have experienced decelerating price growth momentum. For 9MTD, private home prices rose a marginal 0.4% q-o-q and 2% since Dec 2012, much slower than the 2.6% appreciation in 2012. In HDB resale market, prices dipped for the first time, retracing 0.9% q-o-q, a sign that incoming supply and tighter financing terms in this segment are cooling down demand. 2014 will likely see an inflexion of residential prices. Anecdotal evidence is showing slower transaction volumes in both the public and private markets amid deceleration in price momentum. In HDB resale market, average cash premiums for secondary market sales have also retraced back to 2010 levels, with a greater number of transactions being concluded at below independent valuers’ valuations. These are signs that a market correction is imminent.... Continue Reading