Will MAS review CM soon?

[Ringo33]

Since the recent CM on TDSR, Moody has downgraded our local banks highlighting their exposure to mortgage loan toand possible interest hike.

Since a stable banking system is extremely vital this country's reputation and financial hub, I am just wondering in the event when interest actually rises, will MAS actually remove some of the earlier CMs to ensure a soft landing in property price instead of crash.

I am guessing MAS could possible allow buyer to stretch their loan beyond 65 years of age to ease the monthly installment when interest rate rises.

[pmet]

Too early to say. Wait till market corrects 20% or so first...

[Ringo33]

Too early to say. Wait till market corrects 20% or so first...

Can Singapore government afford to have a severe property crash that will impact the stability of our banking system?

[pmet]

Can Singapore government afford to have a severe property crash that will impact the stability of our banking system?

I don't think that's what they want but reality has to be matched. BTW, 20% not crash lah, alot of S'porean can tank one

If no holding power, don't play property.

[august]

wait till interest rate go up first, then see how.

[Reuben]

CM is to prevent crash and not to crash it.

[ichigo55]

if there's a crash, removing CMs will not alleviate the downward pressure

[walkthetiger]

wait till interest rate go up first, then see how.

Read the ST's News today,

"Home buyers seeking fixed interest loans to cushion themselves from the effect of an expected rise in global interest rates will find that some banks have already hiked their offers.

On Monday, Maybank raised its three-year fixed rate for a mortgage by 0.1 percentage point while ANZ lifted its two-year rate by 0.17 percentage point, industry players noted.

Some other banks appear to have pulled their fixed-rate packages off the shelf. The Straits Times understands that Citi used to offer a fixed-rate loan but stopped officially offering fixed-rate mortgages last month. Standard Chartered also no longer offers fixed-rate mortgages.

Maybank's rates now start at 1.25 per cent for the first year and average out to around 1.4 per cent over three years, which are among the lowest in the market, while ANZ's two-year rate rose from 1.48 per cent to 1.65 per cent."

[Allthepies]

The last CM which forced bank to use long term rate has protected all new buyers from a future rise in interest rate...those who bought earlier has chance to build up their cash reserve for the impending rise in interest rate.

[chiaberry]

I doubt CM will be removed any time in the near future. Property prices are still rising rather than going down. The CMs are to protect the banks as well, otherwise the downgrading will be even more severe.

[princess_morbucks]

I doubt CM will be removed any time in the near future. Property prices are still rising rather than going down. The CMs are to protect the banks as well, otherwise the downgrading will be even more severe.

I agree.
If the CM is removed, buyers will go wild.
Especially if cm for foreigners is removed then we will be in a precarious position due to the formation of a property bubble.
I believe that there are lots of cash rich people around, who are not affected but the TDSR.

[walkthetiger]

I doubt CM will be removed any time in the near future. Property prices are still rising rather than going down. The CMs are to protect the banks as well, otherwise the downgrading will be even more severe.

It seems like our media is in favour publishing bullish news on property...hope they are not trying to unearth supporting materials for next CM..

[DKSG]

It seems like our media is in favour publishing bullish news on property...hope they are not trying to unearth supporting materials for next CM..

In this age and era, dont trust the media completely.
Read what they publish and gather information on your own.

Certain information are facts - eg Jurong condo FULLY SOLD on day 1 (700++ units), land sales of QBay II at 34% higher than QBay.

Then we process this information. Dont add your personal prejuidices (eg I bought Jurong, so Jurong is good!) Developer bought a piece of land at a price which they project they can make a profit.

So in conclusion, the market is still inching upwards. More news will suffice in the near future.

DKSG

[Mo gu]

I agree.
If the CM is removed, buyers will go wild.
Especially if cm for foreigners is removed then we will be in a precarious position due to the formation of a property bubble.
I believe that there are lots of cash rich people around, who are not affected but the TDSR.

A lot of people are currently renting are waiting . Once the price drop say 10 percent , they may enter. Not to say 20 percent. But may be a lot more waiting to drop even lower . But recent year see condo launching like no tomo. Quite scary too.

[Regulators]

If go up another 30% from now then drop 20% later, when u think is the right time to buy?

A lot of people are currently renting are waiting . Once the price drop say 10 percent , they may enter. Not to say 20 percent. But may be a lot more waiting to drop even lower . But recent year see condo launching like no tomo. Quite scary too.

[DKSG]

A lot of people are currently renting are waiting . Once the price drop say 10 percent , they may enter. Not to say 20 percent. But may be a lot more waiting to drop even lower . But recent year see condo launching like no tomo. Quite scary too.

My office ALOT ALOT ALOT of people waiting to buy their second/third fourth properties. Dont say 10%, some people 5-8% below valuation, they jump in already!

I suspect the CMs is holding back the market by about 40%. So, when the government knows that if they dont do anything market will move up 40%, what they do ? They hold you back and try to time it such that when market moves down x%, they release x% of demand back into the market to stablise prices.

This is the strategy of a good government!

DKSG

[Lovelle]

My office ALOT ALOT ALOT of people waiting to buy their second/third fourth properties. Dont say 10%, some people 5-8% below valuation, they jump in already!

I suspect the CMs is holding back the market by about 40%. So, when the government knows that if they dont do anything market will move up 40%, what they do ? They hold you back and try to time it such that when market moves down x%, they release x% of demand back into the market to stablise prices.

This is the strategy of a good government!

DKSG

yea lor, i also wanna buy but now all these ABSD just disturb disturb...why only rich can buy har ? Poor cannot buy meh ?

[DKSG]

yea lor, i also wanna buy but now all these ABSD just disturb disturb...why only rich can buy har ? Poor cannot buy meh ?

Can! If market now drop 20%, government will remove some of the CMs then you can buy at 20% discount! In addition, they will also help you by stopping land sales and allowing other freebies as well !

See? Government is very kind to you, hold you back until there is discount then make u can buy.

Smart right ?

DKSG

[mermaid]

yes, expect to see such revision on Straits Time soon.

"More cooling measures needed to cool a high burning market"

[Lovelle]

Can! If market now drop 20%, government will remove some of the CMs then you can buy at 20% discount! In addition, they will also help you by stopping land sales and allowing other freebies as well !

See? Government is very kind to you, hold you back until there is discount then make u can buy.

Smart right ?

DKSG

i want to thank the gov for giving me a discount. But so far there is no discount . my neck also long liao....

i think the gov cannot do anything, now moody also downgrade Sporre banks. MAS got to respond , it show gov ammo also getting limited liao

[CondoWE]

Can! If market now drop 20%, government will remove some of the CMs then you can buy at 20% discount! In addition, they will also help you by stopping land sales and allowing other freebies as well !

See? Government is very kind to you, hold you back until there is discount then make u can buy.

Smart right ?

DKSG

If market drop 20%, people will still wait and see because they afraid it might drop further...

[rymccondo77]

If market drop 20%, people will still wait and see because they afraid it might drop further...

One (or at least most people) can't time the market perfectly - can't keep waiting for the perfect timing to buy or sell.

[joelx]

i want to thank the gov for giving me a discount. But so far there is no discount . my neck also long liao....

i think the gov cannot do anything, now moody also downgrade Sporre banks. MAS got to respond , it show gov ammo also getting limited liao

The problem is Govt is also preventing you from getting rich by introducing all the CMss. So it really depends whether you are Ppty owner or Ppty hunter.

[DC33_2008]

Why buy now when rental yield going to fall to 1-2%?

My office ALOT ALOT ALOT of people waiting to buy their second/third fourth properties. Dont say 10%, some people 5-8% below valuation, they jump in already!

I suspect the CMs is holding back the market by about 40%. So, when the government knows that if they dont do anything market will move up 40%, what they do ? They hold you back and try to time it such that when market moves down x%, they release x% of demand back into the market to stablise prices.

This is the strategy of a good government!

DKSG

[walkthetiger]

A lot of people are currently renting are waiting . Once the price drop say 10 percent , they may enter. Not to say 20 percent. But may be a lot more waiting to drop even lower . But recent year see condo launching like no tomo. Quite scary too.

If many start to buy after it drops, then that will also trigger many renting houses available/empty.

[mosaic]

Wait long long. In fact I think the MAS will continue to tighten the screws again if developers continue bidding for land like that. The government is aware most people prefer lower, and not higher property prices at the moment.

[dtrax]

My office ALOT ALOT ALOT of people waiting to buy their second/third fourth properties. Dont say 10%, some people 5-8% below valuation, they jump in already!

I suspect the CMs is holding back the market by about 40%. So, when the government knows that if they dont do anything market will move up 40%, what they do ? They hold you back and try to time it such that when market moves down x%, they release x% of demand back into the market to stablise prices.

This is the strategy of a good government!

DKSG

So scary.. 3rd property or more and hoot 1 more easily need 560k cash/cpf for a 750k condo unless they got many first-timers minions to leverage on

[radha08]

So scary.. 3rd property or more and hoot 1 more easily need 560k cash/cpf for a 750k condo unless they got many first-timers minions to leverage on

Nowadays property game only 1 winner...

[dtrax]

Nowadays property game only 1 winner...

U know I know can liao. Afterall how many 1 decade a person can live..juz make sure hoot 1x big big during downturn so wun lose control and become angry if prices run up

[lot286]

The government probably knew of the downgrade ahead of the action. Which is why they did what they did.

Same thing happened in the USA when the country was downgraded in 2010. (gov knew ahead).

It is because of appeasing the rating agencies, that the CM was done.

This has nothing to do with retail property or property prices directly per se. It has to do with the "over leverage" of Singapore consumers and banks. Property loans is only a factor into their decision making.

Stress testing this leverage factor, taking into account economic 'shocks' (recession, etc), property price shocks and unemployment shocks, is what led to Moody's downgrade of banks. This action is to rein in the banks' lending activity in the property sector, and has nothing to do with property owners like us.

Some banks stopping to offer fixed rates loans is a question mark. I really doubt that is the case because it makes no sense as they can simply offload the mortgage risks into the interbank market.