Housing loans climbed 34% YoY.
Private home prices grew 9.1% following the deep in Q2 2017 whilst property transactions rose 25% YoY, Monetary Authority of Singapore managing director Ravi Menon revealed. Following this, housing loans over the last twelve months climbed 34% YoY.
“If property prices rise too rapidly, they will outpace the growth in income,” Menon commented. He added that households will have to take on more leverage than they are able to manage as the risk will grow due to rising interest rates.
Menon said that MAS, together with the Ministry of National Development and the Ministry of will continue to monitor the developments in the residential property market to ensure sustainability.
We are reminded that the Government stand ready make policy and regulatory changes in order to ensure a sustainable property market over the longer term.” ERA key executive officer Eugene Lim said.
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