The rising rate of interest surroundings within the U.S. might stress Singapore’s residential property market in 2019, an govt from an actual property companies and funding agency informed CNBC on Wednesday.
As of the third quarter of 2018, costs for Singapore’s personal residential properties continued to extend, in accordance with a report from actual property company Knight Frank. “The costs had been supported by first-time dwelling consumers and buyers searching for Singapore properties for diversification functions,” the report mentioned.
However which may be poised to alter, in accordance with Desmond Sim, head of analysis for Singapore and Southeast Asia at CBRE. Citing poor enterprise sentiments attributable to world slowdowns and the U.S. Federal Reserve’s streak of hikes this yr, he mentioned “muted demand” for residential property within the area is to be anticipated going ahead in 2019.
“Demand might be just a little bit slower on the again of poorer sentiments and likewise on the again of concern of rising rates of interest. So, now we have projected that demand will possible, you realize, come down within the area 7,000 to eight,000 items the place now we have seen traditionally it is gone as much as 20,000 items earlier than. So undoubtedly extra muted demand going ahead in 2019,” added Sim.