Analysts told TODAY that they do not anticipate the Government will introduce any new cooling measures to tackle rising HDB resale prices, since it had already rolled out fresh measures in September last year – with most of them targeted at the HDB market.
To keep to one of the property cooling measures that is the total debt servicing ratio, which refers to the portion of a borrower’s gross monthly income that goes towards repaying monthly debts and loans now capped at 55 per cent, a stress-test interest rate of 4 per cent for residential properties is applied.
Moreover, they should also have some financial buffer in case they encounter financial hardship and are not able to service their property loans in the short term, she said. Ms Sun said that this gap between buyer-seller price expectations may cause fewer deals to be closed or they may take a longer time to seal.