The latest measures will weed out speculative activities and further deter potential investors because of the higher cash outlay and a higher breakeven price to be achieved with a significant increase in stamp duty when the property is sold within four years, said a UOB spokeswoman.
Lui Su Kian, DBS senior vice-president and head of deposits and secured lending, said the bank has always encouraged home buyers to be prudent as a home loan is a long-term commitment.
Housing loans have been the biggest driver of bank loan growth, though there are signs of slowing growth. In November 2010, the latest data available, housing loans rose 1.7 per cent over the month – and 22.1 per cent over the year – to $110.9 billion at end-November. The annual pace of growth has been slowing since August, when it reached 23.4 per cent
Bankers are bracing for a slowdown in home loans as buyers take stock of the government’s latest property measures to dent the buoyant market.
The latest restrictions, the third in 12 months, are considered fairly drastic as they call for cash of as much as 50 per cent to buy a property in some cases. They could eliminate a lot of potential buyers.
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