Tharman Shanmugaratnam, chairman and senior minister of the Monetary Authority of Singapore, said the rapid rise in long-term interest rates in the United States has the chance to lead to an increase in the cost of debt, warning property buyers to enter the market with caution.
He said the rise in U.S. interest rates should come amid a strong recovery in the local economy, which will add some momentum to Singapore’s economic rebound, which is expected to grow by 4 to 6 percent this year, compared with a 5.4 percent contraction last year as a result of the epidemic.
He said that although most property buyers should be able to continue to repay their mortgages, a small number of households in the private property market may face cash flow constraints, so buyers should assume that interest rates will rise and make sure they can afford to repay their loans before making a long-term financial commitment.
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