to singapore ’ s strengths. while external headwinds will slow singapore ’ s pace of growth in the short term, domestic economic restructuring is proceeding well and will enable the economy to emerge stronger. the financial sector is a good example. growth will be slower than last year given the sector ’ s exposure to the external environment. but the relentless effort by financial institutions to promote innovation, harness technology, transform jobs, and upskill the workforce, will position the sector well for the future. mas will continue to closely partner the industry to make singapore the leading global financial centre in asia, supporting the region ’ s growth and creating good jobs for singaporeans. let me stop here and we will be happy to take your questions. 10 / 11 bis central bankers'speeches 1 this refers to growth in the finance and insurance industry, excluding holding companies. the unadjusted growth rate for the sector, published by dos, was 5. 8 %. 2 the net job creation figure of 6, 900 includes fintech jobs in the overall economy, but excludes jobs in holding companies. the employment increase of 7, 600 for the financial and insurance sector in 2018, published by mom, includes holding companies. 11 / 11 bis central bankers'speeches

however, the real estate and construction subsectors have started to recover as restrictions on mobility and economic activity were gradually relaxed. we also saw real estate demand slip due to pandemic - related uncertainties. the capital values for office and residential units in the country ’ s major commercial and business 1 / 6 bis central bankers'speeches districts decreased in 2020 due to lesser demand amid the pandemic. a higher vacancy rate was also recorded during the period due mainly to slowdown in leasing activities, weak demand and a cautious market. based on the latest residential real estate price index, the residential real estate prices of various types of new housing units declined further in q2 2021. the nationwide house prices contracted by 9. 4 percent year - on - year in q2 2021, from – 4. 2 percent in q1 2021 as the pandemic hit demand. however, high base effects may also have contributed to the significant decline during the period as the index peaked in q2 2020 while posting a 4. 8 percent increase quarter - on - quarter. meanwhile, the national commercial property price index, which measures the average changes in appraised values of commercial properties, shows a deceleration in growth in the second half of 2020. the bsp anticipates that activity in the real estate market will recover in line with rebound in overall economic growth in 2022. meanwhile, the philippine banking system remained on solid footing as shown by continued growth in assets, deposits and capital, as well as positive net profit, stable capital and liquidity buffers, ample loan loss reserves and manageable loan quality. overall, the banking system ’ s financial condition remains supportive of the country ’ s financing needs. at the height of the pandemic in 2020, the bsp implemented liquidity - enhancing measures to support financing requirements of the economy. for instance, the bsp lowered the bsp ’ s policy rate by 200 basis points. this rate has since been maintained at 2. 0 percent, the lowest rate since the beginning of the pandemic. the bsp also reduced reserve requirements of universal banks to 12 percent from 14 percent. this policy stance has contributed to a general decline in lending rates across all loan product categories. for instance, the weighted average interest rate of housing loans dropped to 6. 6 percent as of end - june 2021 from 8 percent in end - march 2020. similarly, the weighted average interest rate of loans to corporations fell to 4. 9 percent as of