What should be the government’s role in the primary mortgage market?. Sock-Yong Phang Singapore Management University Housing Finance Panel 5 July 2002 AsRES/AREUEA Conference Seoul. What should be the government’s role in the primary mortgage market?.
Singapore Management University
Housing Finance Panel
5 July 2002
Governments should be involved because of
Credit or default risk mortgage market?
Price or I.R. risk
Cap on loan to value
Mandatory housing fund
Development of VRMs
Clear legal framework
Supervisory bodiesLenders’ Risks Measures
Housing P affordability mortgage market?
Mortgage P affordability
Liquidity of asset
Labour income risk
Housing wealth risk
Housing price expectations
Supply of affordable housing
Supply of affordable mortgage loans
Reducing transaction costs
Employment creation and economic growth
Reducing P volatility
LR housing P appreciationDeterminants of Dd Measures to for mortgage loans strengthen demand
Public Housing 81.3% mortgage market?
Private Flats 12.5%
Private Houses 6.2%Singapore Housing Stock 2001
Percentage of public sector built housing that is owner-occupied:
1970 21% of 120,138 units
2001 93% of 849,422 units
Table 1 Housing Stock in 1999 mortgage market?Housing Wealth Distribution
Recent policy changes to allow diversification of CPF balances into stocks, bonds, unit trust, and insurance products