Sales volume of resale private homes feared to plunge 10-15%

It won't be a good 2H13.

According to Knight Frank, prices and sales volume are expected to slow in the second half of 2013 arising from the latest MAS ruling on debt servicing framework that was announced on 28 June 2013.

Nonetheless, Knight Frank does not expect prices to decline as long as the housing market is supported by genuine demand from local buyers and low interest rates continue to prevail in the near term.

Here's more from Knight Frank:

Sales volume of new sale and resale private residential properties is likely to be affected for the second half this year – potentially down by 10 per cent to 15 per cent q-o-q in 3Q 2013.

Developers need to devise proactive initiatives to draw buyers to their newly launched projects, such as discounts for bigger units or incorporating more popular unit types into their projects.

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