Highly leveraged homeowners may face double whammy from inflation, housing supply: IREUS
A PERFECT storm could potentially be on the horizon for owners of private residential properties in Singapore, especially those who are highly leveraged, said the Institute of Real Estate and Urban Studies (IREUS) at the National University of Singapore.
Rising interest rates amid growing inflationary pressures as well as an impending increase in the housing supply are expected to bring headwinds for homeowners relying on rental income, based on the research institute’s analysis of historical data.
The Business Times (BT) reported in late April 2022 that several banks in Singapore had suspended fixed-rate home loan packages, which offer a flat interest rate, amid the surging cost of funds. Mortgage advisers polled by BT also said that mortgage rates in the city-state could be raised by 3 times this year.
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