{"id":76194,"date":"2018-01-10T11:24:41","date_gmt":"2018-01-10T04:24:41","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-seeks-more-details-on-loans-for-property-projects\/"},"modified":"2018-01-10T12:05:11","modified_gmt":"2018-01-10T05:05:11","slug":"mas-seeks-more-details-on-loans-for-property-projects","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-seeks-more-details-on-loans-for-property-projects\/","title":{"rendered":"MAS seeks more details on loans for property projects"},"content":{"rendered":"


\nThe Monetary Authority of Singapore (MAS) placed more scrutiny on the way banks are funding property development projects, by gathering more data from them via a new survey sent out last month, reported The Business Times.
\nThe move comes as developers made a slew of aggressive land deals last year.
\nIndustry players believe that the Singapore central bank is giving more attention to the collective and government land sales (GLS) tenders due to the steep loan-to-value (LTV) ratios on development loans in some cases.
\nSources revealed that information sought includes the size of banks\u2019 exposures as well as details of the loan facilities extended to each project such as the LTV ratios and key covenants.
\nMAS is also seeking more details on loans with higher LTVs and which require additional covenants.
\n\u201cMAS expects banks to adopt sound credit underwriting standards in their lending practices. As part of our ongoing surveillance and supervisory work, MAS collects data from banks to monitor their lending practices to specific sectors from time to time,\u201d said a spokesman for MAS.
\nHe noted that banks should continue to review their valuation practices while maintaining prudent underwriting standards \u201cto ensure that property appraisals remain realistic and substantiated\u201d.
\nMeanwhile, some market watchers believe that the government can douse the feverish land bids by developers by setting borrowing limits on development projects.
\n\u201cIt won\u2019t be surprising if the MAS follows in the footsteps of Hong Kong Monetary Authority (HKMA),\u201d said one of the sources.
\nIn a bid to rein in risks in the booming property market, the HKMA reduced the caps on bank loans extended to developers from 1 June 2017.
\nDerek Tan, senior vice-president for group equity research at DBS, noted that favourable financing has allowed developers to achieve high returns on equity (ROE) on property development projects.
\n\u201cIf there\u2019s greater prudence in the LTV ratio, developers will need to come up with more capital. Their ROE will drop, and this will cause developers to be more cautious when bidding for land.\u201d
\n\u00a0
\nThis article was edited by Keshia Faculin.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…MAS seeks more details on loans for property projects<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Monetary Authority of Singapore (MAS) placed more scrutiny on the way banks are funding...<\/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-76194","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-jOW","jetpack-related-posts":[{"id":93257,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-cools-property-market-with-higher-absd-rates-tighter-ltv-limits\/","url_meta":{"origin":76194,"position":0},"title":"Govt cools property market with higher ABSD rates, tighter LTV limits","date":"July 6, 2018","format":false,"excerpt":"\r Buyers rushing to submit their cheques at Riverfront Residences before the 12am deadline to avoid the revised ABSD rates. (Photo: Jeanice Ong) The government has raised the Additional Buyer\u2019s Stamp Duty (ABSD) rates and tightened the Loan-to-Value (LTV) limits on residential property purchases, in a bid \u201cto cool the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2018\/07\/Adjustments-to-ABSD-rates.jpg?fit=1000%2C562&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":123833,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-unveils-new-property-cooling-measures\/","url_meta":{"origin":76194,"position":1},"title":"Singapore unveils new property cooling measures","date":"December 16, 2021","format":false,"excerpt":"\r Singapore unveils new property cooling measuresThe new Singapore property cooling measures, which include a higher ABSD, lower TDSR, and tighter LTV, will take effect from today, 16 December 2021. The Government on Wednesday (15 December) unveiled a package of measures to cool the private residential and HDB resale markets.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/12\/Buildings-singapore.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":49342,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/making-sense-of-the-property-tweaks\/","url_meta":{"origin":76194,"position":2},"title":"Making sense of the property tweaks","date":"March 24, 2017","format":false,"excerpt":"\r View of luxury apartments in downtown Singapore. In a surprising move, the government recently eased some of the property cooling measures. Will it draw home buyers back into the market and push property prices up? We ask the analysts for their views. 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The Monetary Authority of Singapore (MAS) has clarified that certain limits for deferred payments on consumer loans and mortgages will be waived in a\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":47961,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-buying-frenzy-despite-easing-of-property-cooling-measures\/","url_meta":{"origin":76194,"position":5},"title":"No buying frenzy despite easing of property cooling measures","date":"March 14, 2017","format":false,"excerpt":"\r Sales at some new launches in Singapore continue to move slowly despite the recent tweaking of property curbs. The easing of some property cooling measures last week has not propelled demand for private homes, reported the Straits Times. 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