{"id":120473,"date":"2021-02-18T01:21:28","date_gmt":"2021-02-17T18:21:28","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/low-interest-rates-pose-risks-to-property-market-warns-heng\/"},"modified":"2021-02-18T10:07:52","modified_gmt":"2021-02-18T03:07:52","slug":"low-interest-rates-pose-risks-to-property-market-warns-heng","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/low-interest-rates-pose-risks-to-property-market-warns-heng\/","title":{"rendered":"Low interest rates pose risks to property market, warns Heng"},"content":{"rendered":"


\nLow interest rates pose risks to property market, warns HengThis comes as Singapore\u2019s housing market registered a rapid recovery after the COVID-19 pandemic brought the economy to its worst recession, sparking speculation that the government would once again intervene and roll-out new\u00a0cooling measures.
\nSingapore\u2019s Deputy Prime Minister Heng Swee Keat warned that the low interest rate environment can lead to property price distortions, reported Bloomberg.
\n\u201cThe interest rates today are ultra low, and in some cases even negative, so this can lead to a significant mispricing of asset prices and a significant risk of investing in the wrong places,\u201d Heng said in an interview with Bloomberg News on Wednesday (17 February).
\nHis statement came amid speculation that the government may introduce new cooling measures in the housing market.
\nThis comes as Singapore\u2019s housing market registered a rapid recovery after the COVID-19 pandemic brought the economy to its worst recession, sparking speculation that the government would once again intervene and roll-out new cooling measures.
\nRecommended article:\u00a0Home Financing Strategies For Managing Cash Flow Amidst COVID-19 Pandemic
\nGovernment ministers including Heng, who is also the Finance Minister, have said they do not want to see the property market running ahead of economic fundamentals.
\n\u201cWhen individuals commit to buying a property, they are making a big part of their life savings in it and we want to make sure that it is something that\u2019s sustainable,\u201d explained Heng during the interview.
\nSuggested read:\u00a0Why More Homeowners Are Refinancing Now, Especially Thanks To COVID-19 Property Reliefs
\nOn whether it is still too early to relax the present property curbs, the Deputy Prime Minister said: \u201cIt is certainly premature and in fact I should say that we have to watch this.\u201d
\nThe Singapore government introduced its last round of measures in July 2018, which include tighter home loan limits and higher stamp duties, after prices jumped 9.1% the year before.
\nIn 2020, residential property prices increased 2.2%.
\nWhen asked what price threshold the authorities may take additional steps, Heng declined to say exactly when stating merely that the government is monitoring the matter.
\nHeng shared that the Singapore government has \u201cdeveloped a fairly good risk dashboard for the whole economy\u201d since the Asian and global financial crises.
\n\u201cDifferent agencies are monitoring different aspects of the risk board so that if there\u2019s a need for us to move pre-emptively, we will,\u201d he added.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s Listings, Project Reviews and Guides.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Low interest rates pose risks to property market, warns Heng<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Low interest rates pose risks to property market, warns HengThis comes as Singapore\u2019s housing market...<\/p>\n","protected":false},"author":1,"featured_media":120474,"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-120473","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/02\/Residential-apartments-in-Singapore-v2-1.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vl7","jetpack-related-posts":[{"id":114393,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-plans-to-ease-property-curbs-deputy-pm\/","url_meta":{"origin":120473,"position":0},"title":"No plans to ease property curbs: Deputy PM","date":"February 20, 2020","format":false,"excerpt":"\r His statement comes after developers made renewed calls to loosen a measure penalising them for their failure to complete and sell new projects in five years.\u00a0 Singapore\u2019s Deputy Prime Minister and Finance Minister Heng Swee Keat revealed that the government has no plans to ease the property cooling measures.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8177,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/budget-2016-what-to-expect\/","url_meta":{"origin":120473,"position":1},"title":"Budget 2016: What to expect","date":"March 11, 2016","format":false,"excerpt":"\r Key measures will be announced in Budget 2016, and many are wondering if this will mean changes to the property measures. 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