This is a result of Government cooling measures and mortgage curbs continuing to affect the property market.
The Government has rolled out a series of measures to rein in property prices since 2009, and the impact has begun to show. In the fourth quarter of 2013, private home prices saw their first decline in nearly two years, falling by 0.9 per cent from the previous three months.
Mr Gupta said he is hopeful that property prices will correct by 10 to 15 per cent in 2014, with high-end homes taking the biggest hit. His views are harsher on the marketplace than most property analysts, who only predict a decline of 5 to 10 per cent.
Gupta states that it is difficult to predict the extent of correction as it is dependent on a number of factors such as interest rate, environment, economic conditions and housing supply situation.
DBS Bank saw a 30 to 35 per cent mortgage application reduction since last June, this was a result of the Total Debt Servicing Ratio framework. This means that more borrowers are taking on fixed rate loans to protect themselves from a rising interest rate environment.