Share this
Digg
Del.icio.us
StumbleUpon
Netscape
Yahoo
Technorati
Googlize this
Facebook
Export PDF
Print
E-mail
Singapore’s central bank said low borrowing costs and excess liquidity globally may push the island’s property prices higher again, setting back government efforts to cool the market.
There is a risk that financial institutions may ease lending standards and extend more loans to make up for narrowing interest margins, the Monetary Authority of Singapore said in its Financial Stability Review today. Buyers may also take on “excessive leverage” amid expectations of a sustained period of low rates, the central bank said.
There is a risk that financial institutions may ease lending standards and extend more loans to make up for narrowing interest margins, the Monetary Authority of Singapore said in its Financial Stability Review today. Buyers may also take on “excessive leverage” amid expectations of a sustained period of low rates, the central bank said.
The government in August increased down payments for second mortgages and imposed a stamp duty on property held for less than three years to curb speculation. After leading 36 markets around the world in property-value changes in the second quarter in a Global Property Guide survey, government statistics showed price gains slowed in the three months to the end of September.
“There is a possibility that transaction activity and prices could pick up again given the current global conditions of flush liquidity and low interest rates,” the central bank said. “The government will continue to be vigilant in monitoring developments in the property market, and if necessary, adopt additional measures to promote a sustainable property market.”
GOVERNMENT LAND AUCTION
The government said it placed 17 sites on its list of property to sell for residential developments in the first half next year. About 8,100 apartments can be built on the sites, comparable to the supply in the second half this year, the most since it started its current land auction system in 2001, it said in an e-mailed statement today.
Another 13 properties will also be offered in the first half, which could yield a further 6,200 homes, it said. An auction for these sites will only be triggered when the government receives a bid that meets its minimum price, it said.
Private residential prices rose 2.9% in the third quarter from the previous three months, when they climbed 5.3%, according to Urban Redevelopment Authority. Singapore’s government forecasts economic growth of 15% this year and expansion of 4% to 6% in 2011.
