Singapore property to remain resilient

Singapore’s domestic-driven sectors such as construction, real estate and related financing are expected to remain resilient, according to a central bank report.

“The level of output in the economy will further converge to its underlying potential, while the labour market remains at full employment, in part reflecting supply-side constraints,” noted the Monetary Authority of Singapore (MAS).

There are also potential risks in the external economy, while pressure from economic restructuring could result in higher business costs in the country.

MAS maintained its consumer price index inflation forecast at three to four percent, while core inflation is expected to range between 1.5 and 2.5 percent.

Meanwhile, Singaporeans were slightly more optimistic about the economy, especially in job prospects and personal finances resulting in the rise of spending intentions, according to a Nielsen study.

Singapore’s consumer confidence index rose a point to 96 points in Q1 this year from the previous quarter. However, it is at the same level compared to Q1 2012.

“Our latest survey results show that consumers in Singapore are feeling slightly more upbeat about their job prospects, personal finances and the future recovery of the economy. The strengthening consumer outlook was also reflected in spending intentions,” said Luca Griseri, Head of Financial Services at Nielsen for Singapore and Malaysia.

Source : PropertyGury – 2 May 2013

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