July rush to buy Singapore property may boost mortgages: DBS

DBS Group Holdings said that the recent rush buy property ahead of the Singapore government’s latest price cooling measures may give a temporary boost to its mortgage business but in the longer term, the market is likely to slow down.

The country’s largest bank expects “a slight ramp-up in mortgage financing requirements” in the next one or two months as a result of the July 5 rush to purchase apartments before the government measures take effect.

About 1,000 condominium units were sold that evening in the hours between the government’s announcement of a new property clampdown, and the midnight deadline when the curbs took effect. These buyers will likely be looking for mortgage financing.

Singapore imposed higher stamp duties and tougher borrowing limits in a bid to cool speculative demand stoked by record land bids and redevelopment deals.

After that demand has been satisfied, the mortgage market will cool, though discounts from property developers will mitigate the downturn.

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