Banking sector gets a boost from property market’s soft landing: Moody’s

Credit will grow at a moderate pace.

The banking sector will benefit from the soft landing of Singapore’s property market, according to a report published today by Moody’s Investors Service.

Moody's has revised its outlook for Singapore's banking system to stable from negative, reflecting the domestic property market's soft landing, and moderating domestic and cross-border credit growth.

The report said that Singapore's domestic property market is undergoing a soft landing, as regulatory steps and new housing supply have moderated prices for public and private housing by about 5%-7% since 2013. 

Moody's expects this trend to continue as additional housing supply comes online, interest rates gradually increase and current regulatory measures remain in place.