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Number of House Loans Slows

Apr 07, 2011 - Samantha Loveridge
This month has seen the number of house loans drop to the lowest level seen in a year.


(Singapore's property market may be standing tall, but the numbers of housing loans are falling. Image courtesy of Singapore Tourism Board.)

However, it seems like this isn’t the lowest point they could fall to. Experts believe that this is due to the market not yet realising the full impact of the cooling measures brought in by the government in January.

At the moment the value of outstanding home mortgages stands at an estimated $115.3 billion. This is only a 0.95% rise from the figures from the end of January; the lowest growth rate since February 2010.

Kenneth Ng, an analyst from CIMB bank said that the effects of the government’s cooling measures probably won’t be seen until next year. Speaking to The Strait Times, head of personal financial services for HSBC Greg Zeeman qualified this prediction. He said that “the effect of the cooling measures may be evident only later as the data captures home loans booked two to three months ago”.

Although, this month’s slow could just be the fallout from Chinese New Year. At the end of February last year the growth was 0.93% according to the Monetary Authority of Singapore.

Analysts are saying that the growth figure isn’t a concern yet, as the low mortgage rates offered by many banks will help support the market. Just to give one example, UOB have a limited time offer that provides first-year rates at 0.68% and the second-year at 1.39%. Offers like this should have the house loan figures rising again before too long.
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Related Categories: Loans and Financing

Tags: bank loan, banks, Buying Property, financing, home loan, home loans, loans, property sale, Real Estate, Singapore property market

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