New regulations lead to fewer choices for home buyers

The new housing loan rules introduced by the Monetary Authority of Singapore (MAS) will severely limit the choices among second-time buyers, according to a Citibank report.

Since the curbs took effect, buyers looking to purchase a second property can only afford a home that is 30 percent more affordable, which was not the case before, the report noted.

Fewer units would be available to these buyers, as they would have to limit their choices to homes where the loan falls within the 60 percent Total Debt Servicing Ratio (TDSR).

Citi noted that Singapore’s household debt has spiked due to mortgages, highlighting that “household debt relative to GDP has risen to about 77 percent, similar to levels recorded before the Asian financial crisis nearly two decades ago.”

Source – PropertyGuru – 11 Jul 2013

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