DBS predicts 20% decline in mortgage applications

Property cooling measures begin to bite.

According to Maybank Kim Eng, on the impact of recent property measures, DBS’ experience is that resale bookings are down about 20-30% but mortgage applications for buildings under construction are up about 20-30%.

Bookings as a whole have been flat, but as loans for buildings under construction would only hit the book over the next 2-3 years, there would still be an overall negative impact on outstanding loans.

"Management continues to guide for an estimated 20% decline in mortgage applications as a result of the recent measures and a 1ppt impact to loan growth, in line with our expectations," Maybank Kim Eng said.

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