Car loan rules eased, property measures next?

Romesh Navaratnarajah28 May 2016

Apartment blocks in Singapore resize

Easing of property cooling measures next?

The Monetary Authority of Singapore (MAS) this week raised the maximum loan-to-value (LTV) ratio for motor vehicles to 60 to 70 percent, from 50 to 60 percent previously. In addition, the maximum loan tenure will be raised to seven years from five years.

What does this mean for the property market? In a report released on Friday (27 May), Credit Suisse said: “With the weakening macro outlook, easing of property cooling measures would be one of the range of policies the government can use to combat a slowdown.

“We believe the market could start to price in an increasing probability of property measures (which we expect in 2H 2016),” added the report.

The government has repeatedly ignored calls from developers to review the property cooling measures as prices haven’t fallen that much.

Housing prices in Singapore only fell by 1.2 percent since September 2015 and nine percent from its highest level in September 2013. Between 2003 and its peak, prices grew by a whopping 92 percent.


Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email

Jason Chan
Jun 01, 2016
Good point there, Koh.
Hwee Khoon loh
May 30, 2016
Why can't the government control the HDB sector and leave the private housing sector to fluctuate according to market conditions? I am not a professional in the property market but are hearing news that more ID related industries are suffering from income loss, more property agents are losing their income, more apartments are up for auction, people are renting their apartments in airbnb and escaping paying tax on these income, able singaporeans who may have the earning capacity but do not have enough cash to pay for their second home turning to buy cheap houses in nearby countries for investment instead of putting their money into the local property market... the list of negative impacts goes on. So, i am not too sure whether the "cooling measures" are working or creating more negative impact.
HW Koh
May 29, 2016
Looking at property prices in isolation may not givr the right picture. In fact the property prices have lagged behind SIngapore GDP growth and the income growth of the general population. Since 1995, GDP + 219%, Income +134% Property Prices + 96%. Koh

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