{"id":123715,"date":"2021-12-09T01:47:15","date_gmt":"2021-12-08T18:47:15","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-cautions-homebuyers-to-exercise-prudence-amid-rise-in-household-debt\/"},"modified":"2021-12-09T10:09:33","modified_gmt":"2021-12-09T03:09:33","slug":"mas-cautions-homebuyers-to-exercise-prudence-amid-rise-in-household-debt","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-cautions-homebuyers-to-exercise-prudence-amid-rise-in-household-debt\/","title":{"rendered":"MAS cautions homebuyers to exercise prudence amid rise in household debt"},"content":{"rendered":"


\nMAS cautions homebuyers to exercise prudence amid rise in household debtHousehold debt in Singapore increased between Q4 2019 and Q3 2021, with household debt accounting for 70% of Singapore\u2019s GDP during Q3 2021.
\nWith this, the Monetary Authority of Singapore (MAS) urged Singaporeans to exercise prudence when taking on property purchases or debt, reported TODAY.
\n\u201cHouseholds should exercise caution in taking on new commitments, especially with regard to their abilities to service their long-term mortgage obligations,\u201d said the central bank in its annual financial stability review released on Monday (6 December).
\n\u201cHighly leveraged households should also plan to build up financial buffers where possible, to allow some cushion against stresses emanating from an unexpected deterioration in macroeconomic conditions.\u201d
\nRelated article: Home Loans Amid COVID-19: Will This \u201cLow Interest Rate Environment\u201d Last?
\nMAS revealed that household debt accounted for 70% of the city-state\u2019s gross domestic product (GDP) during the third quarter of 2021.
\nAlthough the figure is down from 72% in Q1 2021, it is higher compared to pre-COVID levels, where household debt stood at 67% of total economic output in Q4 2019.
\nNotably, household debt rose between Q4 2019 and Q3 2021, while nominal GDP declined \u2013 hence the hike in household debt\u2019s share of GDP.
\nOver the past year, household debt\u2019s total value increased 6.8%.
\n\u201cAccordingly, household leverage risk has effectively risen compared to pre-COVID levels,\u201d said MAS as quoted by TODAY.
\nRelated article:\u00a0Is it Always Better to Pay Off Your Home Loan ASAP? We Weigh Pros and Cons
\nHousing loans, which increased by 2.4 percentage points, emerged as the single largest contributor to the 3.7% growth.
\nIt was underpinned by the buoyant housing market, which registered higher transaction prices despite the challenges brought by the pandemic on the economy.
\nThe central bank noted that housing loan\u2019s credit quality has improved in the past year, remaining healthy.
\n\u201cHowever, in the event of a shock to the property market, the correction in property prices could impact domestic demand, given that residential properties and loans account for the bulk of the household balance sheet, representing about 40% of assets and 75% of liabilities,\u201d said MAS.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…MAS cautions homebuyers to exercise prudence amid rise in household debt<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

MAS cautions homebuyers to exercise prudence amid rise in household debtHousehold debt in Singapore increased...<\/p>\n","protected":false},"author":1,"featured_media":123716,"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-123715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/12\/HDB-flat-Singapore.jpg?fit=820%2C411&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-wbp","jetpack-related-posts":[{"id":73059,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapores-property-debt-drops-amid-rise-in-real-rates\/","url_meta":{"origin":123715,"position":0},"title":"Singapore\u2019s property debt drops amid rise in real rates","date":"November 28, 2017","format":false,"excerpt":"\r Morgan Stanley believes the accumulation of debt due to property acquisitions in Singapore has eased thanks to higher real rates, reported Singapore Business Review. 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