SINGAPORE, Oct 5: Singapore’s central bank on Friday tightened rules on residential property lending amid fears that the city-state’s real estate market could be heading into a dangerous bubble.
The Monetary Authority of Singapore (MAS) said in a statement it was imposing a maximum tenure of 35 years for new housing loans with effect from Saturday.
“MAS’ move is part of the government’s broader aim of avoiding a price bubble and fostering long-term stability in the property market,” the central bank said.
“The maximum tenure of all new residential property loans will be capped at 35 years. In addition, loans exceeding 30 years tenure will face significantly tighter loan-to-value limits.” Song Seng Wun, a regional economist with CIMB Research, told AFP the move was likely prompted by “fears of a property bubble”.—AFP