In an attempt to cushion the effects of rising interest rates and tame house prices, which are at all-time highs, the Singapore government rolled out a new set of cooling measures at 11.40 pm on Sept 29, which came into effect at midnight.
"The property market is now closer to an inflection point, amid slowing economic growth, rising living costs and interest rates, says Lam Chern Woon, head of research & consulting at Edmund Tie. “The final straw that breaks the housing camel’s back would be an outright recession impacting employment and income, or further cooling measures."
The latest measures include raising the medium-term stress test interest rate by 0.5 percentage points from 3.5% to 4% for residential property purchasers, based on the total debt servicing ratio (TDSR) of 55% for private housing loans. For non-residential property, the medium-term interest rate has been increased to 5% from 4.5% before.
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