SIBOR climbs to four-month high

A key interest rate benchmark hit a four-month high on Thursday (Aug 13), as sentiment towards the Singapore dollar remain weak following the depreciation of the Chinese Yuan.

On Wednesday, the three-month Singapore Interbank Offered Rate (SIBOR) rose to 0.9345 per cent. On Thursday, the rate climbed further to 0.9388 per cent.

Property analysts said banks have not yet adjusted mortgage rates that are pegged to SIBOR, which are currently hovering around 1.5 to 1.7 per cent. The rate is expected to rise to 2 per cent by the end of this year.

The vacancy rate for residential properties is also expected to climb, following the tightening of the labour market and slowing down of the economy. Experts said some owners may be forced to sell their properties due to difficulties servicing their loans.

Source : Channel NewsAsia – 13 Aug 2015