Asked by y***@gmail.com
I haven’t got my property yet. So, can I expect the property price to fall with the higher interest rate?
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4 Answers
Dear sir/madam,
Unless the current owners are highly leverage from financial perspectives, the increase of interest rates have been factored in whenever borrowers take up a home loan from the bank or financial institutions in Singapore with the Total Debt Servicing Ratio framework in place, therefore, it could perhaps trigger home owners to sell with higher interest rates to reduce the financial burden, but any fall in the home prices are very minimal. Most home owners will probably just hold back their sale should there be a slowdown in demand in the resale market. Moreover, with a high demand rental market now, investment homes are enjoy excellent rental returns currently in general and therefore should not be affected by the interest rates hikes.
Hope the above helps!
Warmest regards,
Geryl Lim
Associate Deputy Group Director
Salesperson Registration No. R014783H
Email: geryl.lim@orangetee.com / geryl7772@gmail.com
OrangeTee & Tie Pte Ltd 430 Lorong 6 Toa Payoh #01-01 OrangeTee Building Singapore 319402
Estate Agent Licence No. L3009250K
[main] +65 6471 8888 [mob] +65 81577565 [LDA] +65 92787772
www.geryllim.com
My self introductory video on https://www.youtube.com/watch?v=S_2NydENfx0
-----
Note: We value your home as much as you do! Find out the indicative value of your home at http://bit.ly/UrHomeMatters and get monthly update on your home value. Restructure your portfolio with us, speak to us!
Tenants can visit http://bit.ly/SGExpatRental (Official Rental Requirements - Singapore Expatriates) to indicate your rental requirements.
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Landed Dynamic Alliance
Home of *7772 Hotline
Check out our latest Landed Dynamic Alliance 7772 mobile application on iOS or Android @ http://l.ead.me/7772 Read More
Unless the current owners are highly leverage from financial perspectives, the increase of interest rates have been factored in whenever borrowers take up a home loan from the bank or financial institutions in Singapore with the Total Debt Servicing Ratio framework in place, therefore, it could perhaps trigger home owners to sell with higher interest rates to reduce the financial burden, but any fall in the home prices are very minimal. Most home owners will probably just hold back their sale should there be a slowdown in demand in the resale market. Moreover, with a high demand rental market now, investment homes are enjoy excellent rental returns currently in general and therefore should not be affected by the interest rates hikes.
Hope the above helps!
Warmest regards,
Geryl Lim
Associate Deputy Group Director
Salesperson Registration No. R014783H
Email: geryl.lim@orangetee.com / geryl7772@gmail.com
OrangeTee & Tie Pte Ltd 430 Lorong 6 Toa Payoh #01-01 OrangeTee Building Singapore 319402
Estate Agent Licence No. L3009250K
[main] +65 6471 8888 [mob] +65 81577565 [LDA] +65 92787772
www.geryllim.com
My self introductory video on https://www.youtube.com/watch?v=S_2NydENfx0
-----
Note: We value your home as much as you do! Find out the indicative value of your home at http://bit.ly/UrHomeMatters and get monthly update on your home value. Restructure your portfolio with us, speak to us!
Tenants can visit http://bit.ly/SGExpatRental (Official Rental Requirements - Singapore Expatriates) to indicate your rental requirements.
Visit and Like my facebook page at https://www.facebook.com/GerylLimSince2009/ - Aspiring To Be The Best Real Estate Agent In Singapore
Pick up knowledge, skills and Real Estate concepts at https://www.facebook.com/RealEstateXcellence/
New Singapore Expatriates on facebook is up and running. Come join us at https://www.facebook.com/groups/newsgexpats/
-----
Landed Dynamic Alliance
Home of *7772 Hotline
Check out our latest Landed Dynamic Alliance 7772 mobile application on iOS or Android @ http://l.ead.me/7772 Read More
Hi
Interest rate can be a factor that reduce the demand for housing however, it is not the only factor that will affect prices. We have seen reduce volume due to the various cooling measures but prices continue to escalate.
We may text 9620 0827 for a casual chat,
Warmest regards
Gavin Read More
Interest rate can be a factor that reduce the demand for housing however, it is not the only factor that will affect prices. We have seen reduce volume due to the various cooling measures but prices continue to escalate.
We may text 9620 0827 for a casual chat,
Warmest regards
Gavin Read More
Hi,
1) If you had followed the property market closely you will know that the interest rate in 2018/9 was 2.2x%.
2) Compared to the current rate of 1.6x~1.7x%, the current rate is still considered low than in 2018/9.
3) The property sales in 2018/9 were still healthy although the sale is slower than current. There was no price drop back then.
4) Our TDSR & MSR interest rate tabulated for mortgage loans stays at 3.5% to ensure all borrowers are able to withstand a fluctuation of interest rate up to 3.5%.
5) This was the main reason why there were no fire sales back in 2020/21 even though a lot of people's jobs were insecure, and a lot of businesses were badly affected.
6) So your hope of property price falling due to the higher interest rate might not be materialized.
Hope the above answer your main concerns, but if there are more query, please feel free to contact me at 90110636 , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer
Note:
Any response to our answer does not reach us until we scroll through each and every query posted daily.
The best way to get a follow-up is to Whatsapp or email us directly. Read More
1) If you had followed the property market closely you will know that the interest rate in 2018/9 was 2.2x%.
2) Compared to the current rate of 1.6x~1.7x%, the current rate is still considered low than in 2018/9.
3) The property sales in 2018/9 were still healthy although the sale is slower than current. There was no price drop back then.
4) Our TDSR & MSR interest rate tabulated for mortgage loans stays at 3.5% to ensure all borrowers are able to withstand a fluctuation of interest rate up to 3.5%.
5) This was the main reason why there were no fire sales back in 2020/21 even though a lot of people's jobs were insecure, and a lot of businesses were badly affected.
6) So your hope of property price falling due to the higher interest rate might not be materialized.
Hope the above answer your main concerns, but if there are more query, please feel free to contact me at 90110636 , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.
Best regards
Ling CK
90110636
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer
Note:
Any response to our answer does not reach us until we scroll through each and every query posted daily.
The best way to get a follow-up is to Whatsapp or email us directly. Read More
Hi,
In my opinion, Singapore property prices are more influenced by government policies such as population growth, land sales supply, immigration numbers, and real estate regulations such as financing and taxes policies. Interest rate is one of the several factors but it does not seem to be a big factor, perhaps due to the higher 3.5% rate as a rate policy taken to calculate and disburse home loans since the implementation of TDSR in 2013. This means most homeowners have sufficient buffer in the event of rate hikes, which at this point seems manageable given it is still below 3.5%.
It may affect the buying sentiment for investors for now but for home-owners the pent-up demand is still quite strong with the supply shortage in the market. Putting the forces all together, it may be a prolonged wait to see if and when prices coming down. In fact prices are still creeping higher even though volume is slowing down.
Just my 2 cents. Hope the above clarifies. May I have more info and requirements about your plans so as to make better recommendations? Thanks and look forward to value-add to your housing plans.
Warm Regards,
Ivan Ng Realtor
ERA Senior Marketing Director
ERA Diamond Achiever
SEAA Salesperson Achievement Award 2021 (Gold)
SEAA Singapore Accredited Mortgage Planner (SAMP)
ERA Top 93th Achiever for Full-Year 2020 (Top 1.5% Company Level)
ERA Top 11th Achiever in June 2020 (Top 1% Company Level)
ERA Top 91th Achiever in 2nd Quarter 2020 (Top 2% Company Level)
ERA Top 15th Achiever in April 2019 (Top 1% Company Level)
ERA Top 86th Achiever in Sept 2019 (Top 2% Company Level)
SMU BBM (Finance), Magna Cum Laude
Proactive. Sincerity. Feedback.
Contact: (+65) 97432395
Whatsapp: wa.me/6597432395
Email: Ivanng10@gmail.com
IG: instagram.com/ivanngrealtor
WeChat: ivanng10
FB: fb.com/IvanNgRealtor
Web: ivanng10.com/clientreviews
(Client's Testimonials)
CEA: R052114D
**Note: We are not prompted when you respond here, hence please get in touch directly. Look forward to hear from you soon! **
-- EC Sellers, Private Property Buyers Dr. Chan & Ms. Xie --
I would like to compliment Mr Ivan Ng for his professional work and effort.I sent my first post in Jan 2019 and Ivan replied promptly, so I have decided to contact Ivan for follow up. My EC was not ready for sale due to MOP (another 3 months from Jan) at that time and Ivan was able to give me advices on how to proceed from there. Initially we have decided to try to write to HDB for early sale but since it was only 3 months left, eventually we waited for another 3 months while we looked for our next property. Ivan was able to arrange for new property showroom appointment at a timely manner while helping us to list for our EC for sale. We were a bit worried when our EC sale time was longer than expected due to trade war, but Ivan was able to reassure us that our EC would sell. By November, he managed to secure a buyer for our EC. Thank you. Read More
In my opinion, Singapore property prices are more influenced by government policies such as population growth, land sales supply, immigration numbers, and real estate regulations such as financing and taxes policies. Interest rate is one of the several factors but it does not seem to be a big factor, perhaps due to the higher 3.5% rate as a rate policy taken to calculate and disburse home loans since the implementation of TDSR in 2013. This means most homeowners have sufficient buffer in the event of rate hikes, which at this point seems manageable given it is still below 3.5%.
It may affect the buying sentiment for investors for now but for home-owners the pent-up demand is still quite strong with the supply shortage in the market. Putting the forces all together, it may be a prolonged wait to see if and when prices coming down. In fact prices are still creeping higher even though volume is slowing down.
Just my 2 cents. Hope the above clarifies. May I have more info and requirements about your plans so as to make better recommendations? Thanks and look forward to value-add to your housing plans.
Warm Regards,
Ivan Ng Realtor
ERA Senior Marketing Director
ERA Diamond Achiever
SEAA Salesperson Achievement Award 2021 (Gold)
SEAA Singapore Accredited Mortgage Planner (SAMP)
ERA Top 93th Achiever for Full-Year 2020 (Top 1.5% Company Level)
ERA Top 11th Achiever in June 2020 (Top 1% Company Level)
ERA Top 91th Achiever in 2nd Quarter 2020 (Top 2% Company Level)
ERA Top 15th Achiever in April 2019 (Top 1% Company Level)
ERA Top 86th Achiever in Sept 2019 (Top 2% Company Level)
SMU BBM (Finance), Magna Cum Laude
Proactive. Sincerity. Feedback.
Contact: (+65) 97432395
Whatsapp: wa.me/6597432395
Email: Ivanng10@gmail.com
IG: instagram.com/ivanngrealtor
WeChat: ivanng10
FB: fb.com/IvanNgRealtor
Web: ivanng10.com/clientreviews
(Client's Testimonials)
CEA: R052114D
**Note: We are not prompted when you respond here, hence please get in touch directly. Look forward to hear from you soon! **
-- EC Sellers, Private Property Buyers Dr. Chan & Ms. Xie --
I would like to compliment Mr Ivan Ng for his professional work and effort.I sent my first post in Jan 2019 and Ivan replied promptly, so I have decided to contact Ivan for follow up. My EC was not ready for sale due to MOP (another 3 months from Jan) at that time and Ivan was able to give me advices on how to proceed from there. Initially we have decided to try to write to HDB for early sale but since it was only 3 months left, eventually we waited for another 3 months while we looked for our next property. Ivan was able to arrange for new property showroom appointment at a timely manner while helping us to list for our EC for sale. We were a bit worried when our EC sale time was longer than expected due to trade war, but Ivan was able to reassure us that our EC would sell. By November, he managed to secure a buyer for our EC. Thank you. Read More