A Look At Economic Events In And Around Singapore

global-news logoEvery week we take a look at the latest news that is going on in or around Singapore. In today’s article, we’ll be discussing Singaporeans’ views on the recent property cooling measures. We will also zoom in on the enhanced economic collaboration of Vietnam and Singapore and the current bilateral ties between the two countries.

Singaporeans welcome Property Cooling Measures

According to the iProperty Asia Property Market Sentiment Report H1 2014 (APMSR),  Singaporeans have shown broad support for cooling measures and expectations of falling prices, while still expressing utmost confidence in property as an investment, both nationally and internationally. Singapore General Manager, Mr. Sean Tan had this to say about the survey conducted: “The cooling measures have begun to lower prices, which respondents recognise and support. Property, in both Singapore and overseas remains a very attractive investment, and confidence in its long-term value is strong“.

He continued: “The question now is when will buyers feel comfortable with adjusted prices and jump back in? With 51 per cent intending to buy a property within the next 24 months, there is a lot of pent-up demand”.

Most respondents welcome the implementation of the Additional Buyer’s Stamp Duty (ABSD) and Total Debt Servicing Ratio (TDSR) since property prices have came down considerably, but more than half (52%) still deemed that further cooling measures are required.

Mr. Tan notes that although respondents are worried about financing options, close to 51% have a budget above S$800,000. Some developers have already started to charge lower prices in accordance with the more accepted price range.

Furthermore, as pent-up demand remains robust with 51% intending to buy a property within the next two years, property developers like Tuan Sing Holdings (SGX: T24) and SC Global Developments (SGX: D2S) can take a breather for the mean time as prices should remain relatively stable for a while.

Singapore, Vietnam Bilateral Ties and Economic Collaboration

Last Tuesday, Vietnam and Singapore held the 10th Singapore-Vietnam Connectivity Ministerial Meeting, to build further economic collaboration and attempt to forge powerful bilateral economic ties. As Vietnam continues to liberalise and develop its economy, Singapore companies can contribute and participate in Vietnam’s economic development in a wide range of sectors, including urban solutions, retail and food services, logistics, telecommunications as well as tourism and hospitality. Bilateral trade between the two countries have increased over threefold during the last decade from 2003 to 2013 reaching S$17.4 billion last year. March 2014 marks Singapore as being the 3rd largest Vietnam foreign investor registering US$30.2 billion of investments cumulatively spread over 1,258 projects.

Some of the recent investments include one made by Singapore’s Mapletree REIT (SGX: M44U). The company has agreed to develop a project of SC VivoCity as a one stop lifestyle destination for families in Vietnam. Another investment includes Keppel Land (SGX: K17) involving in the Saigon Centre Phase 2 development.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor James Yeo doesn’t own shares in any companies mentioned.