Chart of the Day: Housing loans growth in October harmed by property curbs

It remained muted at 0.7%.

According to Barclays, housing loans growth remained muted at 0.7% m/m (same as in September) and 8.5% ytd, after MAS’s fine tuning of housing loan-to-value limits in late June and the introduction of a 60% Total Debt Servicing Ratio (TDSR) cap, in a bid to further strengthen credit underwriting standards.

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The system loan-to-deposit ratio further inched up to 101% (from 100% in September). Though the delayed Fed tapering may alleviate some concerns over potential liquidity outflow from ASEAN markets in the short-term, it remains a risk to system liquidity in the medium- to long-term.

We believe Singapore is relatively defensive as Asia’s key funding centre and is still one of the most resilient markets in EM Asia to liquidity outflows.