Part 10/13:
Challenges for the Financial System and Housing Market
The global tightening of monetary policy, including US Federal Reserve rate hikes, influences Singapore's financial landscape. Rising interest rates threaten to slow economic growth, forecasted at around 3.5% for 2022, down from 7.6% the previous year.
Meanwhile, Singapore’s resilient property market remains buoyant, fueled by low interest rates and pent-up demand. The resale value of public housing has soared, with over 300 flats fetching prices exceeding $1 million this year. The government has responded with cooling measures to stabilize property demand—a delicate balancing act to prevent overheating while safeguarding affordability.