, Singapore

3 biggest factors that will hurt October developer sales

Barclays explains the likely lull next month.

"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 0.85-0.95ppt for up to the first four year," it added.

"Historically, developer stock prices have been highly correlated to total transaction volumes and values, and we expect developer share prices to soften in tandem with volumes and prices," it said further.
 

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