Investor Presentaiton
Singapore mortgages remains a low risk asset class #UOB
Low Risk of Housing Bubble due to Cooling Measures
High National Savings Rate
(4Q10 = 100)
(% of GDP)
HK, 212
CN, 45
CN, 197
SG, 39
US. 170
AU, 145
HK, 25
AU, 25
SG, 114
US, 18
1Q11
1Q13
1Q15
1Q17 1Q19
1Q21
2013
2015
2017
2019
2021F
Max mortgage tenor
75%/55%*
35 years
Sources: CEIC, UOB Economic-Treasury Research
2011
Sources: IMF, UOB Economic-Treasury Research
Note: AU: Australia; CN: China; HK: Hong Kong; SG: Singapore; US: United States
Property Cooling Measures in Singapore
Loan-to-value (LTV) 1st property 2nd property Thereafter Corporates
45%/25%* 35%/15%* 15%
limit
Household Income in Line with Property Prices
2010 1Q21 +/(-)
Unit costs (SGD m)
Interest rate (%)
1.09
1.27 +16%
2.03
1.40
Total debt servicing
ratio
Seller stamp duty
year
year 2nd
8%
60% limit, 3.5% interest rate applied on mortgages
Sold in 1st
12%
Household income² (SGD / mth)
Debt servicing ratio³ (%)
13,035 17,250 +34%
23
184
Buyer's stamp duty
1%
Additional buyer's
stamp duty
First $180k Next $180k Next $640k
3%
0 to 20%, depending on nationality and number of
properties owned by purchaser
* Higher LTV limits applies if mortgage tenor is ≤ 30 years or sum of
mortgage tenor and age of borrower ≤ 65 years old
2%
3rd year Thereafter
4%
0%
Thereafter
4%
Sources: URA, CEIC, Singapore Statistics, UOB Economic-Treasury
Research
1.
2.
3.
4.
Reflects average price of condominiums in Singapore
Reflects median of resident households living in private properties
Based on a 30-year housing loan, with a loan-to-value of 75%
A housing loan with 5% interest rate would increase DSR to 29%
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