2014 home sales could go as low as 12,000 units: Barclays

If Singapore's cooling policies stay in place.

Singapore's home sales closed the year in a disappointing note, tumbling 80% m/m to just 259 units in December, the lowest since Jan 2009. This brought the 2013 total home sales to 14,980 developer units sold, or down 33% from 2012's record 22,197 units.

Barclays Research forecasts an even dimmer 2014 if cooling polices aren't rolled back.

"Barring any rollback in policies, we now expect 2014 volumes to fall 20% y/y to 12,000 units, as the TDSR rules in place since June 2013 continue to bite, and as buyers become more cautious on the abundant supply pipeline," said Barclays Research.

"We maintain our negative stance on the Singapore residential sector, as we expect prices to fall 5% in 2014 and another 5-15% in 2015 as interest rates rise, and the vacancy rate could reach an unprecedented 9.9% by 2016," it added.

The research firm has said previously that it does not expect a rollback of cooling policies anytime soon, "as home prices are still 61% above their 2009 levels, and GDP, employment and interest rates still appear favourable."

Also Read

One Sophia sells 30% of units at weekend launch

Turf City sites could deliver up to 800 public housing units: Huttons

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit