Why the latest private home sales was not surprising news

TDSR metric not felt yet.

According to Alan Cheong of Savills, the 1,806 units sold are within expectations. Given the fact that the TDSR metric only came into effect on 29 June, the impact can only be felt in as late as August.

Although Vue 8 saw rather tepid sales over the weekend, it could partially be due to buyers initial hesitancy after the recent TDSR pronouncement.

He also said that it is still too early to say if the stricter debt service ratio guidelines had been effective and one can only ascertain with better confidence the effect of this perhaps by the end of next month.

A possible effect of the new TDSR framework is that it prolongs the sales process as buyers need clarity on the amount they can borrow. The profile of sales rate may therefore have been altered by it.

"Instead of seeing the normal front loading of sales at the initial launch, it may now have right shifted it and spread out further into the future. By end-August, then we would have the sales analytics from not only Vue 8 but also The Glades @ Tanah Merah. Therefore, do not be surprised that July’s sales may be as low as half of June’s number," he warned.

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