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THE LEVEL GROUND

Low mortgage rates help; but be cautious in pursuing condo dreams as economic outlook weakens

Don’t raid the CPF account for a private home

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Leslie Yee

Leslie Yee

Published Mon, Jul 7, 2025 · 11:35 AM
    • With a softer economy, the drivers of substantial growth in private home prices may be absent.
    • With a softer economy, the drivers of substantial growth in private home prices may be absent. PHOTO: YEN MENG JIIN, BT

    [SINGAPORE] With home loan rates expected to soften as overnight bank lending rates ease, homeowners and potential homebuyers have reason to cheer.

    The current three-month compounded Singapore Overnight Rate Average (Sora) of 2 per cent per annum is down by about 100 basis points (bps), versus around 3 per cent per annum at the start of the year. The three-month compounded Sora was about 3.7 per cent per annum at the start of 2024.

    As many home loan packages here are priced against the three-month compounded Sora, the rate’s decline will cheer homeowners and potential homebuyers.

    MortgagesSingapore mortgagesResidentialSingapore residential propertyCONDOSSORAThe Level Ground

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