09/12/2021
Headlines like this can be quite alarming - Is the property bubble close to popping? Are cooling measures coming in?
Such articles are a good example at showcasing the consideration between the intention of the article VS what the article actually tells us.
When we read the headline, the first instinct is to think that the property market is over-leveraged due to the rising property prices against the slower GDP growth, and hence, we should expect measures from the government to cool the market.
However, if you read on, you'll realise that households are in fact not over leveraged, as TDSR still remains well below 60% even under stress test performed by MAS.
The intention of the article is essentially to advise households to exercise caution in taking on large new debt commitments, and to be mindful of their ability to service long-term mortgage obligations, and hopefully slow down the property market without requiring to step in with cooling measures.
Have more questions about property? Feel free to contact me at 91188201 😀
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