Will interest rates shift consumer behavior?

When the Federal Reserve lowers interest rates, it has a ripple effect on global markets, including Singapore. Mortgage interest rates in Singapore are influenced by these global trends, and lower Fed rates can reduce borrowing costs for homeowners. As rates gradually decrease, this could motivate more people to consider purchasing homes. Banks and financial institutions typically adjust their rates in response to these changes.

The question is, could this create a favorable environment for prospective buyers? Might it lead to an increase in demand for property purchase?

Do you think that SLA will sell land to developers at a lower price?

While it’s possible, a significant reduction in land prices by the Singapore government is unlikely. The URA and the SLA closely regulate land sales to balance supply, demand, and housing affordability, with a primary goal of market stability rather than using price reductions to drive demand. Given Singapore’s limited land supply, do you think that the government is likely to rush to sell land or will typically aim for higher prices? Even if developers acquire land at a lower price but with the high construction costs, do you think they will significantly reducing property prices?

Who are the buyers who are buying while we worrying about prices too high?

As property owners, we recognise that prices from five years ago are unlikely to return. While many older-generation homeowners feel uncertain about current property prices or hesitate over whether to stay put or upgrade, younger buyers, who haven’t experienced past pricing, often see current prices as reasonable. This younger group typically enjoys higher household incomes, strong family support, and the advantage of longer loan tenures due to their age. Could this position them to secure larger loans and become a driving force in sustaining higher property prices in the future?