According to MAS Managing Director Ravi Menon, there is more allowance for property price to cool, to restore household debt sustainability and entrenching the profits in sustaining the property market.
Particularly, household balance-sheets have begun to strengthen, with yearly household debt growth moderating to 1.7% in first quarter of 2016, falling from about 8.0% in the past 5 years.
For the past 2 years, Singapore property market has stabilised, seeing property prices moderating from its Q3 2013 peak.
However, Ravi Menon noted that property prices have changed only moderately by 9.4%, compared to the 60% growth registered during 2009 to 2013 when specific incomes increased by only 30% over the same period.
According to Christine Li, Cushman & Wakefield Research Director, the property cooling measures multiple doses such as Total Debt Servicing Ratio (TDSR) and the Additional Buyer’s Stamp Duty (ABSD) have significantly curbed housing demand.