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12-09-14, 21:08
http://www.businesstimes.com.sg/archive/saturday/premium/singapore/flagging-consumer-sentiment-can-have-broader-economic-impact-20140906
Published September 06, 2014
Flagging consumer sentiment can have broader economic impact
Redas wants to work with Govt, others to prevent a destabilising economic slowdown
By Lynette Khoo
[email protected] @LynetteKhooBT
AMID strong headwinds in the residential market, the property developers' industry body said there is fear that if consumer sentiments dive sharply as a result of measures designed to cool the market, there could be a broader impact on the economy.
The Real Estate Developers' Association of Singapore (Redas)is seeking to strengthen its partnership with the relevant authorities to "prevent a destabilising slowdown of the economy", said its president Chia Boon Kuah. "We want to pursue a stable and sustainable market," said Mr Chia, who is also GuocoLand Group president and CEO.
"In challenging times, like what we are facing today, it is critical that we not only work on common goals with our partners, but we also need to increase our joint discussion and dialogue, especially between industry and government."
Mr Chia was speaking at the Redas Mid-Autmun Festival Lunch on Friday, which was attended by developers, property consultancies, and government agencies.
He cited a recent report by UBS, which said how the souring of even a small segment of mortgages can have a negative impact on the broader market.
"Banks are rightly concerned, given the huge sums lent to developers and homebuyers," Mr Chia said. "They are keeping an eagle eye on the impact on their housing loan book as the market softens. "For developers, the growing build-up in unsold inventory is a matter of concern. Mortgagee sales are on the rise," he observed.
Meanwhile, genuine homebuyers from the Singapore market have adopted a wait-and-see attitude, Mr Chia added.
He also flagged the surge in Singapore private and corporate investors shifting into overseas market, which prompted the Monetary Authority of Singapore to issue a warning on the dangers of overseas investment by Singapore individuals and entities.
Other industry players present at the lunch also expressed similar views on the impact of the current market consolidation.
"Certainly, with real estate contributing to a large proportion of the GDP, it is going to have a significant impact on the economy," said Augustine Tan, executive director for property sales at Far East Organization.
Donald Han, managing director of Chesterton Singapore, noted that there are signs that the cooling measures have hit not only the higher-end of the residential market but also the broader market.
Mr Chia declined to reveal the content of Redas' discussions with the government.
Published September 06, 2014
Flagging consumer sentiment can have broader economic impact
Redas wants to work with Govt, others to prevent a destabilising economic slowdown
By Lynette Khoo
[email protected] @LynetteKhooBT
AMID strong headwinds in the residential market, the property developers' industry body said there is fear that if consumer sentiments dive sharply as a result of measures designed to cool the market, there could be a broader impact on the economy.
The Real Estate Developers' Association of Singapore (Redas)is seeking to strengthen its partnership with the relevant authorities to "prevent a destabilising slowdown of the economy", said its president Chia Boon Kuah. "We want to pursue a stable and sustainable market," said Mr Chia, who is also GuocoLand Group president and CEO.
"In challenging times, like what we are facing today, it is critical that we not only work on common goals with our partners, but we also need to increase our joint discussion and dialogue, especially between industry and government."
Mr Chia was speaking at the Redas Mid-Autmun Festival Lunch on Friday, which was attended by developers, property consultancies, and government agencies.
He cited a recent report by UBS, which said how the souring of even a small segment of mortgages can have a negative impact on the broader market.
"Banks are rightly concerned, given the huge sums lent to developers and homebuyers," Mr Chia said. "They are keeping an eagle eye on the impact on their housing loan book as the market softens. "For developers, the growing build-up in unsold inventory is a matter of concern. Mortgagee sales are on the rise," he observed.
Meanwhile, genuine homebuyers from the Singapore market have adopted a wait-and-see attitude, Mr Chia added.
He also flagged the surge in Singapore private and corporate investors shifting into overseas market, which prompted the Monetary Authority of Singapore to issue a warning on the dangers of overseas investment by Singapore individuals and entities.
Other industry players present at the lunch also expressed similar views on the impact of the current market consolidation.
"Certainly, with real estate contributing to a large proportion of the GDP, it is going to have a significant impact on the economy," said Augustine Tan, executive director for property sales at Far East Organization.
Donald Han, managing director of Chesterton Singapore, noted that there are signs that the cooling measures have hit not only the higher-end of the residential market but also the broader market.
Mr Chia declined to reveal the content of Redas' discussions with the government.