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Tighter loan limits could feed demand for smaller flats, raise rentals further, curb overall buying

The Business Times TIGHTER limits on property loans announced late last night will shrink homebuyers’ purchasing power and pinch on affordability, market analysts observed. And this could feed into greater demand for smaller flats – specifically resale 4-room Housing Development Board (HDB) flats – while also leading to higher rental rates and a slowdown in demand for private property.