Expert views: New housing measures a step in right direction - Property Auctions News, Property Investment | PropertyGuru

Expert views: New housing measures a step in right direction #PR

On shortening the maximum loan tenure to 25 years and the mortgage servicing ratio (MSR) limit to 30 percent of a borrower's gross monthly salary. “I feel that this is a step in the right direction as it encourages financial prudence and borrowers won’t be overly leveraged. This is especially so in our current low interest rate environment which may fuel demand and cause prices and cash-over-valuations (COVs) of HDB resale flats to spike further. HDB’s resale price index for the second quarter showed that the index is now at a record high of 206.6 points. It is worth noting that it is showing signs of cooling as the index grew 0.5 percent compared to 1.3 percent in the first quarter. The new measure also goes to show that the government is committed to ensure property prices remain sustainable and within reach of first-time homeowners. Already we can see resale flats with ...

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