(RTTNews) - Monday, the Monetary Authority of Singapore said more measures might be required to control speculative momentum in the property market. As Singapore emerges from recession and with the market expecting low interest rates to persist for some time, the risk of a renewed escalation of speculative momentum cannot be discounted, the central bank said in its Financial Stability Review.

The MAS said, “The nature and timing of further measures, if deemed necessary, would have to be balanced against the still uncertain path of economic recovery.” Despite, the lingering uncertainties in the domestic and global economy, domestic property market activity has taken on its own dynamic, added the MAS.

Demand for private residential property started to recover in the first quarter of this year. The current low interest rate also helped to reduce the cost of property financing. “If unchecked, this could lead to a rising spiral of demand and prices as more and more property buyers and speculators are drawn into the market, and expose the property market to the continuing risks in the global economy,” the MAS said.

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