Examine all angles to pinpoint opportunities

By
/ The Edge Property
|
April 8, 2016 12:00 PM SGT
At the inaugural The Edge Property 360° event held on April 2, a panel of speakers gave pointers on how to examine all angles of the property market to uncover opportunities. The event was held in partnership with CapitaLand, Far East Organization, MCC Land, JForte Holdings and Team build Land.
Knight Frank's director and head of consultancy and research, Alice Tan is presenting on Singapore's commercial scene during The Edge Property 360°
CIMB Private Banking director and economist Song Seng Wun kicked off the session with a snapshot of the global economy, which showed that “global trade volume has fallen below the long-term trend line, reflecting the soft consumer sentiment”. The Markit’s Global PMI, which is based on a survey of businesses in the services and manufacturing sectors, shows that these sectors are slowing down.
“The US economy is still in a lukewarm state and whether people want to spend depends on whether they feel that they have money in their pocket and food on the table. Then, they will look at whether they need to change their TV or buy a new phone,” said Song.
“The US labour market is recovering, but there is still plenty of slack. This leads to central banks around the world keeping the cost of funding low to try to get people to spend.
“There is uneven wage growth across job sectors, including those in the resources sector, such as oil and gas, where employees have been laid off. So, it is not a broad-based recovery.
“In China, there is fiscal boost from government spending, which is what countries should do — complement monetary policy with spending. If they cut rates, whether businesses will want to spend will be helped if the government steps in.”
‘Cooling measures have created opportunities to buy’
On the property cooling measures, Song said the finance minister does not have to wait for the next budget to tweak the measures if there is a need to do so, based on the underlying market conditions.
Chart 1: Singapore policy planners watching the property market