SINGAPORE, July 25 — There is still some way to go for the property cooling measures before the Government considers any adjustments, managing director for the Monetary Authority of Singapore (MAS) Ravi Menon said today at the bank’s annual report briefing.

"It’s too early to lift the property cooling measures because we want to make sure that the gains we have made painstakingly over the last one to two years are entrenched, that we are on a sustainable path for the property market, that household balance sheets become stronger still to withstand shocks,” Menon said. 

Menon noted that the contribution to accommodation costs to inflation has come down significantly, while household balance sheets have started to strengthen, and annual growth in household debt moderating.

The property market has been stabilising over the last two years, with prices moderating from their peak in the third quarter of 2013, he said, but he highlighted that property prices had gone up by 60 per cent between 2009 to 2013 when nominal incomes had increased by only 30 per cent during the same period.

"The risk of a renewed surge in property prices is not trivial given that interest rates are likely to remain low and global investors continue to search for yield. And while the growth in household debt has eased considerably, it will take time for household balance sheets to strengthen and become more resilient to interest rate and income shocks,” Menon said.

The MAS, Ministry of Finance and Ministry of National Development will continue to keep a close watch over developments in the property market, Menon said. — TODAY