Barclays reveals its grim forecast findings.
Despite the impressive 70-80% sellout of Sky Vue and Thomson Three this past weekend, research firm Barclays said that developer sales will plunge due to three dampening factors.
"In October, we expect developer sales volume to drop sequentially, given the lack of attractive launches, the tighter TDSR measures continuing to bite and some of the investor liquidity being soaked up," said Barclays.
"Mortgage bankers we spoke with admitted to fewer mortgage applications and approvals since the June TDSR rules although loan packages offered are relatively stable at SIBOR plus 0.85-0.95ppts for up to the first four years," it added.
Barclays made the prediction as it found out that demand for smaller units in Sky Vue and Thomson Three still stemmed from investors, signaling alarms for the robustness of local demand.
Sales for both have apparently slowed, said Barclays, given that the bulk of the choice units have been taken up already with the remaining units being offered at higher prices as they are on higher floors.
Comparing the two developments, Sky Vue performed better, as it has been able to hit c80% takeup so far, even though it was launched a week after and has 56% more units and an 11% higher psf price.
Barclays said one reason for Sky Vue's popularity was due to its proximity to the established Bishan MRT station (meanwhile, Thomson Three’s will only be up by 2021) and popular Junction 8 Shopping Centre.
Source: Singapore Business Review 8th October 2013