Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Singapore Rate Spike To Weigh On Property Prices

Recommended Posts

http://www.bloomberg.com/news/2015-01-11/singapore-rate-spike-to-weigh-on-property-prices.html

A sudden new-year jump in Singapore interest rates threatens to push up mortgage costs and steepen a slide in home prices.

The three-month Singapore interbank offered rate, against which most home loans are benchmarked, has risen 18 basis points to 0.6392 percent this year to the highest since April 2010, driven by a stronger U.S. dollar and new liquidity requirements for Singapore banks.

Short-term interest rates may head toward 1 percent this year as a resurgent U.S. economy could spur the U.S. Federal Reserve to raise borrowing costs, according to United Overseas Bank Ltd. and Maybank Kim Eng Research Pte. A stronger greenback is also making U.S. dollar-denominated debt raised by Singapore banks more expensive to service. The island, which has S$177 billion ($132 billion) of outstanding mortgage debt, posted a 4 percent drop in home prices last year.

Home prices may fall a further 10 percent by mid-2016, while short-term interest rates could top 1 percent this year, more than double the level in 2014, said Vishnu Varathan, an economist at Mizuho Bank Ltd. in Singapore. “About 30 percent to 40 percent of the price decline could come from the interest rate effect,” he added.

I'm sure the BoE is taking note about what happens if they increase rates and all that wealth that they will destroy. We can't have home prices falling.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   218 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.