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Singapore’s GDP to grow slower this year

The weak construction sector is expected to drag Singapore’s real GDP growth at a slower pace of three percent in 2018 from last year’s 3.5 percent, reported Singapore Business Review citing BMI Research.

The construction industry is forecasted to grow 2.4 percent in real terms this year, the same pace seen in 2017, mirroring weak investor sentiment within the residential and non-residential building sectors.

And with the property market showing incipient signs of recovering, BMI Research believes the construction industry will unlikely witness a significant pick up in the coming quarters.

“The government’s ongoing labour restructuring process and the still-weak property market continue to weigh on the construction sector and we expect the outlook to remain anaemic.”

With this, the government plans to use S$ 1.4 billion to support the local construction industry, said the thinktank. However, BMI Research expects the impact to be limited as construction companies continue to struggle with labour shortages and slower demand.

Nonetheless, Singapore’s positive business environment and sound economic fundamentals are expected to provide support for the city-state in the coming quarters.

BMI Research revealed that Singapore has a robust external position, with a net international investment position of around 250 percent of GDP as well as a considerable current account surplus of around 20.0 percent of GDP in 2016.

“In addition, Singapore’s operational risk environment remains sound, coming in at 82.2 (out of 100) compared to the regional average of 53.6 and we expect ongoing efforts to strengthen the already positive business environment to ensure that the republic remains an attractive investment destination over the coming years,” it said.

“This was reflected in Singapore’s retention of its second-place ranking in the World Bank’s 2018 Ease of Doing Business report, boding well for the country’s economic outlook.”

 

This article was edited by Keshia Faculin.

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Singapore economy to grow 3.3% this year

The Monetary Authority of Singapore’s (MAS) survey showed that analysts expect Singapore’s economy to grow 3.3 percent year-on-year in 2017, up from the earlier forecast of 2.5 year-on-year in September, reported Singapore Business Review.

In terms of indicators, analysts were more bullish on the manufacturing sector which is expected to expand 10.6 percent year-on-year, finance and insurance (3.7 percent year-on-year) as well as wholesale and retail trade (1.7 percent year-on-year).

The construction sector’s outlook, however, turned sourer as it dropped from -4.2 percent year-on-year to -7.6 percent year-on-year.

Meanwhile, 47 percent of the respondents believe the electronics sector offers a strong potential upside for the economy.

External growth and property market recovery are cited by 40 percent and 27 percent of the respondents, respectively. Exports upswing, on the other hand, accounted for 13 percent of all responses, down from 35 percent during the previous survey.

Although the composition of the top three downside risks from the September survey remained the same, more respondents, at 67 percent, felt the Chinese economic slowdown poses a significant potential downside.

Global trade protectionism and geopolitical uncertainty in the Middle East and North Korea continue to be major concerns.

The survey revealed that 40 percent of the respondents expect them to hinder economic growth, down from September’s 47 percent.

 

This article was edited by Keshia Faculin.

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S’pore economy to grow up to 3.5% in 2017

Singapore’s gross domestic product (GDP) is forecasted to rise between three percent and 3.5 percent for the whole of 2017, while next year could see a growth of 1.5 percent to 3.5 percent, said the Ministry of Trade and Industry (MTI) on Thursday, 23 November 2017.

For the first three quarters of the year, the economy expanded by 3.5 percent on an annual basis. That for Q3 2017 increased by 5.2 percent, surpassing the 2.9 percent gain in the prior quarter.

On a seasonally-adjusted basis, the city-state’s GDP increased by 8.8 percent during the quarter, exceeding the 2.2 percent uptick in Q2 2017.

“The Singapore economy performed better than expected in the third quarter. Growth was primarily supported by externally-oriented sectors such as manufacturing, finance & insurance, wholesale trade and transportation & storage sectors,” it said.

However, the construction industry declined by 7.6 percent year-on-year compared to the 9.1 percent fall in the preceding quarter due to sluggish building activities in both the private and public sectors. On a seasonally-adjusted basis, it contracted by 5.3 percent versus a drop of 5.9 percent during the second quarter.

Likewise, the accommodation & food services segment dipped by 2.1 percent on an annual basis extending the two percent fall in the previous quarter due to weakness in the industry.  Nevertheless, it rose by 4.1 percent on a seasonally-adjusted basis, reversing the 1.1 percent slide in the preceding quarter.

 

This article was edited by Keshia Faculin.

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Sales of posh high-rise homes to grow further

Demand for upscale apartments located in high-rise buildings in prime locations here have risen over the past three and a half years, according to Leong Boon Hoe, CEO of List Sotheby’s International Realty (LSIR), Singapore.

Citing URA and LSIR data, he pointed out that sales of non-landed homes costing over $ 5 million have increased from 135 units in 2014 to 161 units and 244 units in 2015 and 2016 respectively. For 2017, 203 units have been purchased during the first seven months, with the overall figure expected to surpass last year’s.

During the period, about 50 percent of such upscale dwellings in Singapore were purchased by foreigners, with those from China accounting for the largest share at around 20 percent, followed by Malaysians and Indonesians.

Moreover, Leong noted that Singapore’s capacity for high-rise luxury homes has yet to reach its full potential. This is because the relocation of Paya Lebar Air Base in 2030 will free up 800ha of land for more skyscrapers, and this area is larger than Ang Mo Kio.

In addition, he revealed that the Wallich Residence in Tanjong Pagar Centre emerged as the world’s 9th most luxurious apartment, with psf price of $ 3,227. It is also Singapore’s tallest building with a height of 290 metres.

“Owning an abode in Singapore’s coveted tall residential buildings are huge draws, but more importantly Singapore’s high-rise luxury apartments are competitively priced when compared to similar apartments in other global cities,” he said.

Notably, LSIR has been appointed to market the posh apartments in Wallich Residence across the globe, with exclusivity in the US and Hong Kong. These units include the 21,108 sq ft super penthouse, which is the largest of its kind here.

Meanwhile, Opus Hong Kong and London’s One Hyde Park secured the top two spots in LSIR’s ranking at $ 14,659 psf and $ 13,545 psf respectively in Singapore dollar terms.

Completing the top five are Monaco’s Tower Odeon ($ 12,170 psf), as well as 432 Park Avenue ($ 9,219 psf) and One57 ($ 8,204), both in New York.

 

This article was edited by Keshia Faculin.

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Grow Condos, Inc. Closes 2nd Property Development for 35 Industrial Units

Grow Condos, Inc. Closes 2nd Property Development for 35 Industrial Units
EAGLE POINT, OR–(Marketwired – Apr 28, 2016) – Grow Condos, Inc., a fully reporting publicly traded company under the trading symbol ( OTC PINK : GRWC), a real estate purchaser, developer & manager of specific use industrial properties providing …
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JLL Income Property Trust Grows Industrial Portfolio Acquiring 100-Percent
In keeping with JLL Income Property Trust's strategy to invest in "hubs of transportation" industrial markets proximate to irreplaceable transportation infrastructure, Tampa Distribution Center is strategically located in Tampa's Eastside submarket …
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