Consumers may be more dependent on loans despite low-interest rates.
This chart from ValuePenguin shows the average loan-to-value (LTV) ratio in Singapore has climbed up from 48% in 2014 to 53.4% 1Q2017.
Whilst this may imply consumer's willingness to borrow more in face of historically low-interest rates, 3-month SIBOR may reflect another picture. SIBOR has increased from 0.4% in 2014 to 1.0% recently.
According to ValuePenguin, consumers may be less able to fund their property purchase with their own money. They may have also become more reliant on bank home loans despite higher interest rates and lower property prices.
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