Number surges by 64% from a year ago; level of new loans rises by 12%.
AMID Singapore’s property boom, the number of investors with two or more property loans shot up by 64 per cent in June from a year earlier.
And the number of borrowers owing more than $1 million in property loans was up nearly 26 per cent that month, according to new figures from Credit Bureau (Singapore). New property loans, too, rose 12 per cent from a year earlier to hit 50,514 in June.
All these inaugural figures from the bureau’s latest property market credit analysis show a surge in demand for credit amid Singapore’s property boom.
The trend is captured by the consumer credit bureau’s property loan index unveiled yesterday.
The bureau is an independent body that collates data on borrowing trends in Singapore.
The data is derived from loan data provided by 10 members including ABN Amro Bank, CitiBank, DBS Bank, OCBC Bank, Standard Chartered and United Overseas Bank. It includes loans for private and HDB properties, and other types of properties.
A total of 38,520 consumers were holding multiple property loans in June, the data showed.
The largest number of these consumers was concentrated in District 19 (Serangoon Gardens, Hougang and Punggol) with 3,263 borrowers. Other districts with a relatively large number include District 10 (Ardmore, Bukit Timah, Holland Road), District 15 (Katong, Joo Chiat, Amber Road) and District 23 (Hillview, Dairy Farm, Bukit Panjang).
In June, there were 12,884 consumers owing more than $1 million in property loans. Most of them were from District 10 (2,033) and District 15 (1,218).
Apart from the demand for new loans, the index tracks the approval rate of new loans and the rate of delinquency for such loans.
In June, just over 2 per cent of consumers holding on to about 181,000 loans were delinquent - meaning that they have loans that were more than 30 days overdue. This is healthier than the baseline average of 2.35 per cent.
The bureau’s general manager, Mr Mark Rowley, said it devised the index to provide an early insight into the developing trends in property loans as there is ‘a lot of heat’ in the property market.
‘Delinquency is low at this time, but it is a lead indicator. From a credit risk perspective, if delinquency goes up, that is when we take note of a trend change.’
The data comes amid much talk that banks are tightening the way they lend money to finance home purchases.
‘If banks tighten their lending policy, there would be a widening gap between credit demand and approvals,’ said Mr Rowley.
The demand for new loans, which peaked at 71.77 points on the index in May, slipped in July and last month. But it is still above the average.
Mr Rowley said the loan approval figures for July appear to be tapering off, as there is a time lag in the bureau getting the credit approval figures.
‘They would be around the baseline figure, which shows that the gap is still maintained.’
The bureau will post an updated monthly property loan index on its website. It can be accessed free of charge.
The bureau will also soon issue similar indexes for credit card loans, personal loans and motor vehicle loans.
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