Foreign Property News | Posted by Hnin Ei Khin
Singapore banks expect home prices to fall along with home loan activity, following the introduction by the government of its latest round of property cooling measures.
UOB chief Wee Ee Cheong revealed that his “gut feel” is that home prices will fall 5.0 to 10 percent following the new measures which are effective since Jul 6, reported the Business Times.
But while housing loan activity may also drop, he does not expect it
In fact, OCBC chief operating officer Ching Wei Hong, who also serves as the head of global consumer financial services for OCBC, still expects an overall mortgage growth of low to mid single-digit percentage for 2018.
Singapore’s big three banks – UOB, OCBC and DBS – are bracing for a slower home loan activity in the coming years, given the new cooling measures by the government.
With the new measures expected to hit sentiment, DBS – which is Singapore’s largest mortgage provider – slashed its property loans growth forecast by $1 billion.
The three banks noted that the chill in the property market comes alongside a new type of cold war amid growing trade tensions between China and the US.
The Government announced on Thursday (Jul 5) that it is raising Additional Buyer's Stamp Duty (ABSD) rates and tightening loan-to- value (LTV) limits on residential property purchases.
Ref: Property Report
