SINGAPORE (Aug 20): Concerns about whether local developers and banks can weather the recent cooling measures were laid to rest during results briefings by the local banks. Only DBS Group Holdings revised its loan growth expectations down marginally. DBS has a 31% market share of local housing loans.
Most of the housing loans in Singapore are made to owner-occupiers, and loan-to-value ratios are modest. This was borne out by the latest Monetary Authority of Singapore’s statistics (see table), which shows that the average LTV ratio is 51.5%, down 140 basis points q-o-q. Although the new housing loans limit granted for investment property is up q-o-q, it is still lower than in 4Q2017, an indication of limited or no speculation in the market.
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