Domestic property market in for another months-long sale slump

New TDSR framework is quite the hoser.

According to OCBC, last month's newly introduced Total Debt Servicing Ratio (TDSR) framework will dampen demand for property purchases and mortgage loans "especially for buyers with existing properties and/or other debt liablities."

The research firm further forecasts that: "A slowdown in volumes and potentially more price discounts could emerge in the months ahead."

"The TDSR rules are wide-encompassing and fairly prescriptive, market players may adopt a wait-and-see attitude first. While June may see an uptick in the processing of mortgage loans, we believe that pace of growth of housing loans will like moderate from the 15.9% yoy seen in the first five months of this year," added OCBC.