Singapore experiences renewed investor sentiment amid high property confidence | 29 August 2014
Investor sentiment is at its highest point since the start of 2013 thanks to a significant boost in confidence for property investments.
A survey by insurer Manulife, as reported by straitstimes.com, found the proportion of survey respondents who feel it is a good time to invest in property has climbed to a lofty 40 per cent in the three months to June 30. This marked a substantial rise on the 31 per cent recorded in Q1 2014.
The former figure is also much bigger than many of Singapore’s counterparts across Asia, according to the Manulife Investor Sentiment Index (MISI).
“Low interest rates, market stability and, importantly, the view that property prices have corrected to an attractive entry level for investment” are thought to be the metrics boosting sentiment, the survey reported.
More specifically, sentiment towards residential properties edged up 10 points to a rating of 23, while investment property also moved into positive territory.
Furthermore, mutual fund sectors also helped boost investor sentiment in the city state, claims channelnewsasia.com.
Manulife explained market stability and higher returns in fixed income are among the reasons for the increased optimism in this asset class, while low interest rates and Singapore’s improving employment situation also helped increase investor sentiment.
Naveed Irshad, Manulife president and CEO, commented on the positive investor sentiment: “Clearly Singapore investors have recently regained quite a bit of confidence, but it’s important not to lose sight of the fundamentals and still take a measured approach. It’s crucial to actively manage a diversified portfolio to guard against risk and maximise returns.”
This renewed investor confidence comes alongside hope of a resurrection for the Singapore Flyer, an iconic attraction in the area, which has just been bought for $140 million by Straco Corp.
The firm, run by a prominent local businessman, has invested a significant sum in the attraction and receivers are “confident that the prospects of the Flyer are extremely exciting under the new ownership”.
Mr Lionel Yeo, chief executive of the Singapore Tourism Board, stated: “The Singapore Flyer is a key attraction in the local tourism scene. We are therefore pleased that Straco Corp, a Singaporean company with a strong track record in managing overseas attractions, has chosen the Singapore Flyer as their first attraction in Singapore to establish a presence back home.”
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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