Singapore property outlook to improve longer term, OCBC CEO says
[SINGAPORE] Oversea-Chinese Banking Corp, Singapore's second-biggest lender, expects the country's property market to improve amid the biggest economic contraction since 2012.
"The long-term prospect for the Singapore property market, both on the residential and commercial side, I think continues to be attractive," Chief Executive Officer Samuel Tsien said in an interview at the Singapore Regional Business Forum on Monday.
Office rents on the island-state posted the first decrease in more than two years and residential prices have fallen for seven quarters in the longest run of declines since 2002. Property brokerage Cushman & Wakefield Inc estimates as much as 4 million square feet of prime space will be added in 2016, while government data showed unsold private housing units rose 8 per cent in the second quarter from the previous three months.
Home purchases dropped 42 per cent in June from a month earlier to the lowest level this year as developers held back the sale of new projects. Demand has declined amid a worsening economy and property curbs including higher real-estate taxes and stamp duties. Singapore's GDP fell an annualised 4.6 per cent in the three months to June, underscoring the weakening outlook for Asian nations amid sluggish global growth.
"Right now, the interest is less robust, partly because of the general economic slowdown, partly because of certain measures that were taken," Mr Tsien said. "Long term, the demand will definitely be there."
BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
US 30-year mortgage rate rises to five-month high of 7.24%
Money laundering accused Su Baolin’s Sentosa property goes unsold at auction
US Judge approves US$418 million settlement that will change real estate commissions
In San Francisco, a home renovation can become a battle royale
Country Garden extends bonds to avoid first local default
Daughter of Chinese steel-and-nickel tycoon picks up S$84 million Bin Tong Park bungalow