Singapore's property investors got a yellow card from the city-state's central bank in its annual financial stability review.
"Before investing in property, investors should be aware that rising vacancy rates, declining rentals and impending interest rate increases mean that they may not always be able to rely on rental income to service their investment property loans," said the review, published by the Monetary Authority of Singapore (MAS) on Tuesday.
There's been some signs of a sales pickup in Singapore's property market, with the number of new homes sold rising to 1,252 in October, from 509 in September, the highest number of sales since July 2015.
But prices haven't followed suit, with private residential property prices dropping 1.5 percent on-quarter in the third quarter, according to government data, marking 12 straight quarters of declines and the largest on-quarter drop since 2009 during the global financial crisis.
Vacancy rates have also remained high amid increases in housing supply, running at 8.7 percent in the third quarter, down slightly from 8.9 percent in the second quarter, but still hovering around levels last seen in 2000, amid the aftermath of the Asian Financial Crisis.
"MAS remains vigilant to the risk that demand-supply dynamics could weigh on the property market outlook amid rising vacancy rates and softer economic and labour market conditions," it said.
But it also pointed to upside risks for the market.
"Transaction activity has held firm, perhaps buoyed by the low interest rate environment and better matching of price expectations between buyers and sellers. Resale activity has increased and take-up at some newly-launched projects has been strong," the MAS said.
"The upside risk that current low global interest rates could spur further demand in the market cannot be discounted."