Falling property prices in Singapore – one the world’s most expensive housing markets – have provided some much needed relief for the nation’s banking sector, analysts told CNBC.
“The gradual decline in property prices is credit positive for Singapore banks because it relieves pressure on bank asset quality,” Moody’s analysts said in a note published Monday.
“Further price increases would have increased the risk of a real estate price bubble bursting,” they added. Talk of a bubble forming in Singapore’s red hot property market has been a hot topic in recent years, encouraged by low interest rates and an influx of speculative interest.
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