How will rising interest rates affect the residential property market?

Expect higher mortgages and reduced demand.

Homeowners are expected to service higher monthly mortgages as the SIBOR continues to trend upwards, while rising interest rates will also dampen demand and increase the number of mortgagee sales.

According to Colliers, homebuyers should adopt an even more cautious view of their ability to service a housing loan on back of higher interest rates, though the SIBOR remains well below its historical high prior to the Global Financial Crisis.

Colliers Deputy Managing Director Grace Ng stated that rising mortgage costs will reduce housing demand, while the number of mortgagee sale listings is expected to trend upwards and hit the 200 mark this year.