SINGAPORE - There will probably be a correction in property market prices but a crash is unlikely, said OCBC Bank's chief executive officer, Mr Samuel Tsien.
Part of the reason for its resilience is because the Singapore market holds a certain appeal to investors, he said.
Still, rising interest rates and cooling measures will have an impact, Mr Tsien told The Straits Times at the sidelines of a major China forum at the Shangri-La Hotel yesterday.
"As a result of the different measures imposed by the Government in making sure that speculative demand has been removed, there will be a slowdown in market activities," said Mr Tsien.
"I don't think there will be a crash in the market. There will be some downward adjustment to prices but that is healthy in the long term."
The Government has instituted seven rounds of property cooling measures since 2009, with the latest round in January.
Other moves aimed at reducing the froth in the markets include lowering limits on loans and raising stamp duties.
The measures have worked to stabilise prices.
In the three months to June 30, prices for mass-market apartments rose 3 per from the previous quarter.