In the financial sector in Singapore, a recent trend has been observed in the past few month which shows a decrease in the overall loan value for housing. This was tracked through reports create by the Monetary Authority of Singapore (MAS) which declares that the overall consumer loans of banks has been decreasing. This was a total value of almost S$1 billion as the value of the loans changed from S$203.38 billion to S$202.76 billion.
This is huge news to the banking system as consumer loans actually play a huge role for the whole loans system in the country. Different experts believe that this is a positive thing due to the fact that the government has recently decided to intervene with the current property market prices and try to help make them affordable.
This was commented on by Mr. Lawrence Wong, the Minister for National Development Lawrence Wong through an interview conducted by Bloomberg Television. He stated that: “The property market last year, before the cooling measures were put in place, we saw prices rising very sharply. There was a very real risk that prices would outpace fundamentals, and I think if that had happened, then eventually it would lead to a destabilizing correction, and I think everybody would be worse off. It was, as we had stressed then, not to bring down prices but to stabilize and moderate the cycle, and I think we have achieved that effect.”