Singapore is a massively preferred location for innovation, due to the work and commitment of its inhabitants. In the near future, though, it could be facing an oversupply in the residential market, which is mostly because of the population growth, that increased at its slowest in the last 9 years. In June 2013 the population of Singapore reached 5.4 million, and very noteworthy is that the non-resident population rose a mere 4 %, in comparison with previous years, when it rose up to 20%.The population growth is likely to exceed demand in the following years, which will have a few consequences, such as higher vacancy rates, declines in rents and prices. Another factor that may contribute to this is the large number of homes to be completed between years 2013 and 2017 – approximately 100,000 homes, which means that a bumper supply of homes is due to be completed.Singapore is known for having one of the most expensive real estate markets in the world, but because of this, home property prices could be headed for a correction of up to 20 % by 2015, according to Barclays. This has a positive impact on home buyers who would like to purchase their house using a home loan, because banks forecast a fall of up to 15 in prices by year 2015.The URA (Urban Redevelopment Authority) predicts that up to 95,000 private units will come in the following years, as well as 25,000-27,000 public housing flats a year. The housing supply is expected to average 40,000 units annually, experiencing a peak of 47,000 in 2015. This will lead to vacancy rates rising up to 10 %, as opposed to the current 5.6 %. Historically, it has been observed that rents and prices decline at vacancy rates of 8 percent.It is a common fact that Singapore mortgage rates are normally pegged to SIBOR (Singapore Interbank Offered Rate), which is the interest rate at which banks that are subject to Asian time zones are able to borrow from other banks located in the region. It is a daily reference, set by the ABS (Association of Banks in Singapore). Because of its political correctness and stability, location, and strict regulations, as well as the large amount of foreign investments undertaken in this city state, Singapore is a major location of Asian finance, which makes SIBOR a reference rate for borrowers or lenders involved in the Asian market.