As Singapore property prices continue to fall, many home sellers prefer their units to rent out first, having a hope to fetch a much better selling price when the residential market recovers, media reports stated.
The price of private home have been falling since Q3 of 2013, as property cooling measures bite and loan curbs weigh on demand. In addition to that, resale market has also dropped in transactions.
The drop in resale volume shows that potential sellers are hold out and putting out their units for rent instead, property watchers stated.
“Many home sellers intends to sell but they couldn’t get the right prices they want, sellers decided to rent out first and sell when the property market recovers,” OrangeTee managing director, Steven Tan noted. .
This has led in additional activity within the rental market. URA announced the increased of rental transactions from 50,417 in year 2013 to 56,417 in 2014.
Property analysts expect more possible home sellers to deal with rental market for respite as property prices continue to fall. However, the rise of interest rates may force some home owners to sell.
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