Investors could help Singapore’s long-term property market health despite the possibility of a correction, according to the head of OCBC Bank.
Chief executive Samuel Tsien said yesterday Singapore's property market was likely to remain resilient and healthy in the long term despite possible interest rate rises and the Government’s cooling measures.
He said while a correction was possible, investor appeal was likely to bolster the resilience of the Singapore market.
“As a result of the different measures imposed by the government in making sure that speculative demand has been removed, there will be a slowdown in market activities,” said Tsien.
“I don't think there will be a crash in the market. There will be some downward adjustment to prices but that is healthy in the long term.”
The government has introduced seven rounds of cooling measures since 2009, as well as raising stamp duties and reducing loan limits.
The measures have had mixed results, with prices for mass-market apartments up three percent in Q2 2013, and city centre home prices down 0.2 percent after a 0.6 percent growth in Q1.
Further to the previous curbs, the central bank has recently introduced new loan rules to avoid over-borrowing.
Amy Kelly, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email@example.com