CAR LOAN RULES
EASED, PROPERTY MEASURES NEXT?
May 28, 2016
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.
Info courtesy - Property Guru