Falling Singapore Property Prices Provide Banks Relief

Falling property prices in Singapore – one the world’s most expensive housing markets – have provided some much needed relief for the nation’s banking sector, analysts told CNBC.

“The gradual decline in property prices is credit positive for Singapore banks because it relieves pressure on bank asset quality,” Moody’s analysts said in a note published Monday.

“Further price increases would have increased the risk of a real estate price bubble bursting,” they added.  Talk of a bubble forming in Singapore’s red hot property market has been a hot topic in recent years, encouraged by low interest rates and an influx of speculative interest.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.