Feb 08, 2013 - By: iProperty.com Singapore
According to a report published by Citi Research yesterday, the seventh round of property cooling measures is not expected to impact banks heavily as demand for mortgage and construction loan remain resilient this year, albeit at a slower growth rate.
So far, demand for property remains strong, even in the presence of substantial stamp duties. Q Bay Residences in Tampines sold approximately 300 units at the 630-unit, and an overwhelming number of 12 bids was received from developers for a Jurong residential site near the MRT station.
Despite having six rounds of property cooling measures earlier, there was still a growth of over $20 billion in net mortgage drawdowns last year. The latest measures in mid-January this year mark the most comprehensive yet, and could potentially lead to lower residential sales volume.
Therefore, Citi Research expects the mortgage growth rate to reach 9% this year, comparatively lower than 16% that was registered the year before. It also predicts the growth rate for construction and non-bank financial institution loans to drop from over 17% to about 15%.
With regard to the projection of 6.9 million population by 2030 in the White Paper, National Development Minister Khaw Boon Wan assured that some 200,000 homes would be built by 2016 and sufficient land would be set aside for 700,000 homes by 2030.
Based on this, Citi Research analysts forecast that government residential land sales would remain at $7-8 billion annually for the next two years which would support strong levels of construction loans.
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