Comments on: Singapore: Is the Property Surge Sustainable? http://www.overseaspropertymall.com/regions/south-east-asia-property/singapore-property/singapore-is-the-property-surge-sustainable/ guide to international real estate investment Sun, 12 Oct 2008 05:43:12 +0000 http://wordpress.org/?v=2.6.2 By: hk http://www.overseaspropertymall.com/regions/south-east-asia-property/singapore-property/singapore-is-the-property-surge-sustainable/#comment-3361 hk Sun, 01 Jul 2007 13:18:52 +0000 http://www.overseaspropertymall.com/regions/south-east-asia-property/singapore-property/singapore-is-the-property-surge-sustainable/#comment-3361 Personally, I believe that Singapore's property boom could be attributed to the following reasons: a. Low interest rates in Singapore - it is not only the people who are taking on mortgages, but developers are also using the low rates to bid for existing properties en-bloc. Singaporean's high saving's rate and contribution to the CPF ensures that there is always a ready supply of SGD to meet external demand, thereby creating an environment of low rates. In addition, Singapore's monetary policy focuses on the exchange rate rather than interest rates to achieve price stability. b. Political Stability amid South-East Asia - Singapore's neigbouring countries are at times politically unpredictable and investors are keen to move more of their assets to Singapore where the political environment is predictable and friendly to foreign investments. c. Singapore's status as the private banking hub of South-Asia was a result of the right policies to attract foreign banks and talents. The success of this drive to become a private banking hub has also contributed to the shortage of commerical and residential spaces as foreign banks move to set up their offices here. d. Hype and buzz surrounding the Integrated Resorts which are to be completed in Sentosa and Marina Bay in the next three years. In addition, F1 will have a night version of the street race in Singapore in 2008. The buzz created from these planned activities have driven up the asset prices of the property developments around Orchard Road, Sentosa and Marina Bay. I think that property prices will most likely to abate in late 2008 or early 2009. Reasons are: a. The supply of residential properties will increase once the current developments are completed. The current price inflation is primarily due to the 'flipping' of properties before completion by agents/speculators who are not intending to live in the property. Singapore's supply of residential properties is more than enough to meet its population of 4.4m. b. Overall slowdown in the Global Economy. Inflationary pressures globally has given reasons for central banks around the world to tighten their monetary policies. This will inevitably slow down their economy. With Singapore's huge dependence on foreign trade, any slowdown will most likely dampen grow Personally, I believe that Singapore’s property boom could be attributed to the following reasons:
a. Low interest rates in Singapore - it is not only the people who are taking on mortgages, but developers are also using the low rates to bid for existing properties en-bloc. Singaporean’s high saving’s rate and contribution to the CPF ensures that there is always a ready supply of SGD to meet external demand, thereby creating an environment of low rates. In addition, Singapore’s monetary policy focuses on the exchange rate rather than interest rates to achieve price stability.
b. Political Stability amid South-East Asia - Singapore’s neigbouring countries are at times politically unpredictable and investors are keen to move more of their assets to Singapore where the political environment is predictable and friendly to foreign investments.
c. Singapore’s status as the private banking hub of South-Asia was a result of the right policies to attract foreign banks and talents. The success of this drive to become a private banking hub has also contributed to the shortage of commerical and residential spaces as foreign banks move to set up their offices here.
d. Hype and buzz surrounding the Integrated Resorts which are to be completed in Sentosa and Marina Bay in the next three years. In addition, F1 will have a night version of the street race in Singapore in 2008. The buzz created from these planned activities have driven up the asset prices of the property developments around Orchard Road, Sentosa and Marina Bay.

I think that property prices will most likely to abate in late 2008 or early 2009. Reasons are:
a. The supply of residential properties will increase once the current developments are completed. The current price inflation is primarily due to the ‘flipping’ of properties before completion by agents/speculators who are not intending to live in the property. Singapore’s supply of residential properties is more than enough to meet its population of 4.4m.
b. Overall slowdown in the Global Economy. Inflationary pressures globally has given reasons for central banks around the world to tighten their monetary policies. This will inevitably slow down their economy. With Singapore’s huge dependence on foreign trade, any slowdown will most likely dampen grow

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