Easing of property cooling measures next?
The Monetary Authority of Singapore (MAS) this week raised the maximum loan-to-value (LTV) ratio for motor vehicles to 60 to 70 percent, from 50 to 60 percent previously. In addition, the maximum loan tenure will be raised to seven years from five years.
What does this mean for the property market? In a report released on Friday (27 May), Credit Suisse said: “With the weakening macro outlook, easing of property cooling measures would be one of the range of policies the government can use to combat a slowdown.
“We believe the market could start to price in an increasing probability of property measures (which we expect in 2H 2016),” added the report.
The government has repeatedly ignored calls from developers to review the property cooling measures as prices haven’t fallen that much.
Housing prices in Singapore only fell by 1.2 percent since September 2015 and nine percent from its highest level in September 2013. Between 2003 and its peak, prices grew by a whopping 92 percent.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
