Singapore c.bank wary of property market speculation

SINGAPORE, Nov 9 (Reuters) - Singapore's central bank warned on Monday that more measures may be needed to curb the risk of renewed speculation in its property market, which is buoyed by low borrowing costs and prospects of an economic recovery.

"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 Monetary Authority of Singapore said in an annual Financial Stability Review.

"More measures might then be necessary."

The comments came after the government in September acted to cool the property market by releasing more land and making it harder for home buyers to defer payments.[ID:nSIN486658]

The central bank said Singapore's property market activity has taken a dynamics of its own, despite lingering uncertainties in the domestic and global economy.

Singapore's monetary authority also warned that the global financial market rally has outpaced economic fundamentals and any perception that the economic recovery is stalling could trigger a repricing of financial assets.

(Reporting by Saeed Azhar and Nopporn Wong-Anan; Editing by Kazunori Takada)