A Singapore minister cautioned that economic uncertainties will weigh on the country’s real estate industry, as home sales in the city-state show flagging demand.
“The outlook economically is not clear. It’s not likely to be benign,” said Desmond Lee, minister for National Development in a Monday interview with broadcaster CNA. “We see interest rates staying higher for longer. We see economic uncertainties in the road ahead of us. We see geopolitical tensions, and all these will have an impact on the property sector.”
Singapore’s real estate sector is bracing itself for a fading property boom. While the city-state has avoided downturns that afflicted other cities such as Hong Kong, sales have been on a downward trend since the government introduced measures to cool the market and rising interest rates began to bite.
“We will monitor and take whatever measures may be necessary to ensure stability in our property market, and ensure that the property market does not run ahead of economic fundamentals,” Lee said. His interview with CNA was released by the broadcaster Tuesday. – Bloomberg
