After reading this news, I am not surprised with theview points, although 75bps increasing after latest FOMC "forced" almost all countries around the world following FED's step.
Why I I say Singapore property market will not affect much by interest hiking? The reasons are listed below:
1. Demands and supplies: Asian are always love buying properties, same here in Singapore, after CB during covid 19, both HDB and private properties sales picked up, local buyers contribute majority of the sales. With many foreign buyers entering the market now, the demands are getting higher and higher, hence government has no choice but increase the land sales numbers for more supplies .
2. The leverage risk is not high: after 2008 subprime crisis, Singapore government implemented many measures to prevent credit crisis, total debts service ratio (TDSR) makes sure you can only borrow theamount which you can afford even at potential highinterest environment. The current fixed rate in Singapore after FED 75bps interest hike is still below 2.5%, and you also can choose floating packages, which can be as Low as 1.2x % now (but definitely itwill be increasing after more FOMC interest hike). So honestly speaking, majority of the buyers have already been assessed carefully by the bank, they can probably hold firm during crisis, panic sale andfire sale won't be seen often, I guess.
3. Less bubble: over the past years, Singapore government cools the market very frequently, TDSR, Additional buyer stamp duty, seller stamp duty, minimum occupation period, etc, the bubble in Singapore is really not big. The recent change on the ABSDfor foreigners increased To 30% from 20%, for locals, the ABSD for second property also increased, all these measures are aiming to create a more substantial property market in Singapore.
4. Stable and transparent economic and political environment: thanks PAP, they are always aiming to building a better Singapore [Cool]
Based on all these, I believe Singapore property market will remain strong in the uncertain macro environment
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