Bankbazaar Singapore – January 25, 2018
Singapore: Furthering hopes of a stellar recovery in the local property market, the rating agency Fitch has said that Singapore could see a 5% to 7% increase in home loans between 2017 and 2019.
In its 2018 Global Housing and Mortgage Outlook, Fitch added that improved demand from owner-occupiers, better overall market sentiment, and price competition would be the main factors contributing to this growth.
The growth of home loans has remained sluggish since 2013 after several regulatory measures to control rising prices in the property market dampened sentiments and hurt demand. Fitch’s latest report is in line with recent opinions from analysts across the board that the market is expected to pick up soon.
Over the last year, a series of high profile en bloc sales and an improved macroeconomic outlook had boosted the residential property market. According to the Urban Redevelopment Authority (URA), the number of private homes sold in 2017 was 34% higher than the previous year.
Some experts have also indicated that the demand seen over the previous year was largely domestic. But as the economic outlook improves and Singapore regains its reputation as an attractive investment destination, more foreigners would be interested in the local property market as well.
Elis Lee, the head of strategy at Bank of Singapore, had stressed this point in a recent research note where he pointed out that houses in the country are more affordable than other major Asian cities and this should help in its market positioning.