{"id":113187,"date":"2019-12-19T10:27:04","date_gmt":"2019-12-19T03:27:04","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-home-prices-to-increase-2-in-2020-and-2021\/"},"modified":"2019-12-19T11:02:55","modified_gmt":"2019-12-19T04:02:55","slug":"private-home-prices-to-increase-2-in-2020-and-2021","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/private-home-prices-to-increase-2-in-2020-and-2021\/","title":{"rendered":"Private home prices to increase 2% in 2020 and 2021"},"content":{"rendered":"


\nThis is lower than the 8% growth in 2018.\u00a0
\nAccording to the latest Fitch Ratings, private property prices in Singapore is expected to grow by a modest 2% over the next two years, a significant drop compared to the 8% increase in 2018, reported the Business Times.
\n\u201cWe expect home price growth to reflect the recovering real GDP growth rates of 1.5% in both 2020 and 2021, after growth decelerated to 0.6% in H1 2019,\u201d Fitch said in its Global Housing and Mortgage Outlook 2020 report.
\nFrom Q3 2018 to Q1 2019, mortgage rate hike and regulatory tightening saw private home prices fell 0.7%.\u00a0However, property prices have rebounded since Q2 2018 and Fitch is expecting\u00a0\u201cminor growth\u201d for the rest of 2019.
\nRELATED ARTICLE:\u00a0Presenting The Singapore Property Market Outlook 2020
\nThe report also noted that private property prices will continue to rise if\u00a0borrower affordability is improved, household incomes grow faster than home prices and if interest rates are low, adding: \u201cbut if the government views home prices as rising more than is justified by economic fundamentals, we expect that the government would again cool the market through macro-prudential measures.\u201d
\nNPL ratio is also expected to increase\u00a0
\nFitch expects the housing NPL (non-performing loan) ratio to slightly increase in the next two years, albeit remaining low at 0.4% to 0.5%, on the back of improving household debt-to-income ratio.
\n\u201cMortgage performance will also be supported by continued low unemployment of about 2% in 2020 and 2021,\u201d it said.
\nMoreover, Fitch does not expect a mortgage rate hike in the near future, supporting borrowers\u2019 ability to pay. Mortgage rates rapidly increased to 2% at the end of the first half of 2019 due to a sharp increase in the benchmark rates like the three-month Singapore Interbank Offered Rate (Sibor).
\nHowever, the city-state\u2019s benchmark rate began to decline after the US Federal Reserve unveiled a series of three rate cuts from July this year.
\nWith this, mortgage lending growth is forecasted to remain subdued in the near term.
\n\u201cAfter a projected small decline of 0.5% in 2019, we expect 2% annual growth in each of 2020 and 2021 in line with improving market sentiment,\u201d said Fitch.
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\n\u00a0
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Private home prices to increase 2% in 2020 and 2021<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is lower than the 8% growth in 2018.\u00a0 According to the latest Fitch Ratings,...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-113187","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-trB","jetpack-related-posts":[{"id":48290,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/fitch-looser-property-curbs-wont-stop-price-falls\/","url_meta":{"origin":113187,"position":0},"title":"Fitch: Looser property curbs won't stop price falls","date":"March 16, 2017","format":false,"excerpt":"\r House prices in Singapore are expected to fall by up to five percent in the next two years. 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