Chart of the Day: This graph shows how much sales of new EC units dropped

Can we blame TDSR measures?

According to OCBC, over the last three years, given the low-interest rate environment we were in, affordability has come to the forefront as a key market driver, and homes priced below S$1.2m enjoyed healthy demand.

As a result the bulk of domestic transactions (both by units sold and transactional value) has been in the mass-market segment (OCR) where the highest percentage of homes are priced in the coveted S$0.8m to S$1.2m range, relative to the RCR or CCR segments.

Here's more from OCBC:

OCR sales made up 59%, 72% and 64% of total primary transaction volumes (excl. EC and landed) in 9M13, FY12 and FY11, respectively – noticeably higher versus 44% in FY10 and 40% in FY09.

After the TDSR measures in Jul-13, we saw a knee-jerk reaction for launch performances across all segments in the subsequent months.

While take-up rates recovered in Sep-13 in the RCR segment due to attractive pricing strategies from developers, the OCR segment – the key drivers of market transactions thus far – appear to be still finding its feet after several large launches (The Glades at Bedok and Skywoods and Dairy Farm Rd) showed relatively lackluster results.

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