Even if the housing market was not “overheated,” the Monetary Authority of Singapore (MAS) stated it will stay watchful over increasing house prices.
“No, we don’t believe the market is overheated at this moment,” MAS managing director Ravi Menon said in answer to a question during a media conference on the MAS Annual Report on Wednesday. “If it is, then we haven’t done our job properly,” he added (June 30).
Mr Menon said the housing market has shown remarkable resilience in amidst this current pandemic and recession last year, as well as the ongoing uncertainty over Covid-19 concerns this year.
While the GDP shrank in 2020, the residential property price index (PPI) increased by 1.6 percent. According to him, the PPI was 5.6% higher in the first quarter of 2021 than it was before the epidemic.
The rapid rebound in the residential property market in Singapore has prompted speculation that the government may apply cooling measures for the first time since 2018.
“The government’s strategy is to keep the market from overheating. We’re keeping a close eye on it “Mr Menon said.
He said, ” “Authorities will never say whether or not they would execute measures in advance, since it would undermine the purpose of the measures. So stay attentive and keep an eye on the market, and we hope it will remain steady.”
The MAS, in collaboration with the Ministry of National Development and the Urban Redevelopment Authority, is keeping a close eye on the danger of a prolonged rise in prices in relation to income patterns.
“A protracted gap between prices and wages is unsustainable from the standpoint of market stability and undesirable from the standpoint of home affordability,” Mr Menon added.
He went on to say that the MAS has made it clear that it is committed to keeping the market stable and preventing overheating.