According to the analysts, this is consistent with the Monetary Authority of Singapore’s (MAS) findings that most households should be able to continue to service their debt under stress assumptions of even a 400 basis points (bps) increase in rates and a 10% income reduction.
Credit Suisse research analysts say the Singapore property sector will be a “beacon of light” in 2023 and prove to be resilient despite the anticipated global housing slump.
In their report dated Jan 13, analysts Louis Chua, Nicholas Teh and Melissa Leong say they are expecting Singapore to show modest price growth of 3% to 5% for the year even as the global market “slump” deepens and central bank rates increase. “Despite broadly higher rates, our scenario analysis suggests affordability continues to be healthy for the average household, given wage growth momentum amid a tight labour market,” they say.
