Demand for resale flats has fallen by about 20 per cent since the raising of the income ceiling for Build-To-Order (BTO) flats.
This is according to property agents who added that the cash-over-valuation (COV) prices are also starting to fall.
The income ceiling for BTO flats was raised less than two weeks ago from S$8,000 to S$10,000.
But property agents Channel News Asia spoke to said they are already getting fewer queries about resale flats, as prospective buyers switch to BTO projects.
Another agent said the new rules may be making resale flat sellers more cautious in setting COV prices.
External factors also come into play.
OrangeTee research & consultancy head Tan Kok Keong said: “These measures come at a time when the external economic threats have increased, which probably play a part in the slow down in market activities over the past two weeks.”
But the real impact of the new measures on resale flat prices, said property agents, would only be seen in three to six months’ time, when more BTO projects are launched.
Source : Channel NewsAsia – 25 Aug 2011