Sales ranged below 14%.
The Total Debt Servicing Ratio (TDSR) framework that was implemented since 29 June 2013, is blamed as the key factor that resulted in a steep fall in July 2013 new sales volume.
Developer new sales volume fell significantly by 73.4 per cent month-on-month from 1,806 units in June 2013 to 481 units in July, the lowest since December 2009 where sales volume was similar at 481 units.
The 73 per cent m-o-m fall last month is greater than the previous 64 per cent decline in February 2013, a month after the seventh round of property cooling measures was unveiled.
According to Knight Frank, the considerable longer processing time has dragged the momentum of closing property transactions and impacted sales volume.
With the various requirements under the TDSR ruling, financial institutions require longer processing time to approve loan applications.
"Before the TDSR ruling, financial institutions took only 1 to 2 days to issue in-principle loan approval to a prospective homebuyer. Since the TDSR ruling, financial institutions now require at least 3 to 5 working days to process loan application for straight-forward cases."
In July, there were only 5 projects launched and sales were poor with only between 3 to 14 per cent of the units sold.
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