The local government has firmly refuted concerns raised by S&P regarding an oversupply in the residential property market, emphasizing the ongoing robust demand. The authorities highlighted a private housing vacancy rate of 4.5% at the close of 2024, aligning with the long-term average over two decades. Additionally, rental prices have been on the rise, indicating sustained interest in the housing sector. With lower interest rates, economic expansion, and an influx of skilled individuals expected to bolster the market, the government anticipates stability in the housing market for 2025.

Financial data reveals that property lending reached $3.4 trillion by the end of 2024, with residential mortgages accounting for 56% and commercial property loans making up 44%. Notably, mortgage delinquency remained low at 0.12% as of January 2025, while negative equity cases were minimal at 0.15%. Stringent lending practices, such as maintaining loan-to-value ratios at 60% and debt-servicing ratios at 40%, have ensured that most borrowers can comfortably meet their repayment obligations. Furthermore, reductions in prime lending rates by major banks over the past year have contributed to more affordable mortgage rates, supporting the stabilization of residential property prices.

The government’s stance reflects a commitment to fostering a healthy and stable real estate market. By implementing prudent financial policies and adhering to strict risk management practices, both large and small banks are well-positioned to navigate market fluctuations. This proactive approach not only ensures the resilience of the banking sector but also promotes sustainable growth in the housing market. Such measures underscore the importance of responsible financial practices and highlight the positive impact of sound economic policies on the overall stability and prosperity of the community.