So is interest rate going up soon?

By The Folks @PropTalk - January 30, 2011 No Comments

This is the strongest hint yet, if the report in the Sunday Times is anything to go by.

The Minister for National Development, Mah Bow Tan, has advised Housing Board flat owners looking to upgrade to a private property to wait a little longer before signing on the dotted line.

Serious home buyers should be patient, said Mr Mah, as he expects interest rates and the supply of private properties to rise soon, and both these factors should help to curb the steady trend of rising prices.

“When that happens, you will be thankful that you didn’t buy right now!” he said.

The property market hit new highs last year, fuelled by strong demand from cash-rich buyers, low interest rates and strong economic growth.

Private home prices moved up 17.6% last year after rising just 1.6% the year before. Non-landed property, which includes condominium units popular with Housing Board upgraders, rose 14%.

Mr Mah said the Government is trying to dampen a “flock” mentality that seems to have developed among property investors lured by the promise of making a quick profit.

He added that the recent market cooling measures – which include hefty sellers’ stamp duties and lowered loan limits for second mortgages – should be seen in this context.

For those who cannot wait and need to upgrade their homes right now, Mr Mah said he believed the new measures should not deter them as long as they have sufficient cash flow.

The minister also said that the Government is studying the effects of the latest round of measures closely, and warned that it could act again in 3 to 4 months’ time.

If Singapore Pools will to offer odds on interest rate going up over the next 3 to 4 months, the wife and I will definitely put some money on it…



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