SINGAPORE: Property analysts said the new property loan curbs could cause housing demand to drop by up to 15 per cent over the next few months.
On Friday evening, Singapore’s central bank introduced a Total Debt Servicing Ratio (TDSR) framework and tighter Loan-to-Value (LTV) limits on housing loans.
Analysts said these new rules, which take effect on Saturday, will hit property investors the hardest.
Property analysts said the new rules will not significantly affect genuine house hunters, or those looking to upgrade from their HDB flats.
By Saturday evening, all 738 units at private residential project J Gateway were snapped up.
Over at the Jewel, Buangkok’s new condominium, 80 per cent of its 350 units were sold.
But it is a different story for property investors looking to buy a second or third property.
The TDSR framework will apply to loans for the purchase of all types of property, loans secured on property and the re-financing of all such loans.
Analysts said these latest measures will also close loopholes used by some investors to circumvent the existing rules.
The Monetary Authority of Singapore (MAS) said the move aims to encourage financial prudence and cool demand.
Reference:http://www.channelnewsasia.com/news/singapore/new-home-loan-rules-may/728792.html