The Monetary Authority of Singapore (MAS) has introduced a new rule which prohibits financial institutions (FIs) from tying up with property developers and agents to sell property, according to local media reports.
FIs were informed of this new rule the same day the latest property loan curbs were announced that will, among others, prevent banks from providing preferential interest rates to clients acquiring certain properties.
“MAS is of the view that, except for the granting of property loans, FIs should not be offering any property-related services to customers in general. FIs should therefore not engage in property advertisements or tie-ups with property developers/agents,” an MAS spokesman said.
“This is regardless of the location of the property (in Singapore or overseas) or the type of the property (residential, commercial or industrial). MAS will take into account an FI's compliance on this issue, in its supervisory assessment of the FI,” he noted, adding that the central bank expects full compliance from FIs.
Tie-ups and property advertisements referred to in the new regulation include but are not limited to sending notifications (via phone text, mail or email) to customers on properties for sale or purchase or property launches; advertisement of properties for sale or property launches on mobile applications, websites and premises of FIs; organising special previews of property launches for customers; inviting customers to property launches; and arranging with property developers/agents to offer customers preferential rates for loans to acquire designated properties.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email firstname.lastname@example.org