Singapore developers predicted to keep a more cautious stance in site biddings

Market activity feared to plateau.

According to Savills, even before the announcement of the latest rules from the MAS to restrict home loans, news of the US Federal Reserve’s intention to taper off its third quantitative easing by year’s end has caused anxiety over the end of an era of easy debt financing at low interest rates. 

Savills said that as market sentiment begins to wane, activity in the residential market is expected to moderate over the next few months and developers are likely to adopt a more cautious stance when bidding for new sites in the second half of 2013.

"Moving forward, private residential prices are likely to rise marginally until the end of the year, with the mass-market segment taking the lead," Savills said.