Singapore's residential property prices are well supported at current levels, despite the weak global economic outlook, as home owners have little debt and remain bullish about the sector, according to a Credit Suisse survey.
"At least 76 per cent of households are able to afford a property fairly easily. We also note that 47 per cent do not have an existing mortgage, while another 46 per cent have only one mortgage," the Swiss bank said in a report.
"Meanwhile, 30 per cent have over $100,000 in liquid assets (cash-in-hand), which in our view could easily form the down payment towards buying a property," Credit Suisse added.
Credit Suisse said the majority of Singaporean andn local residents expect property prices and rents to continue rising, even though close to 60 per cent expect further government measures to cool the sector.
The Swiss bank has overweight ratings on CapitaLand and City Developments with target prices of $3.70 and $12.65, respectively.