Singapore experiencing a boom not a bubble, say experts | 21 January 2014
Singapore’s domestic and commercial property market is booming but experts have warned to stop short of calling it a “bubble”, irishtimes.com reports.
Recent figures have indicated that Singapore’s property prices have grown 60 per cent since 2009 and roughly doubled since 2004. This has prompted some analysts – including Forbes columnist Jesse Colombo – to claim that Singapore could be headed for a similar crash to the one experienced by Iceland in 2008.
In response, numerous economists – backed by the Monetary Authority of Singapore – have joined forces to dispel the claim, suggesting instead that it’s a boom (i.e. sustainable growth) rather than a bubble (i.e. an unusual period of growth before the economy crashes).
Some experts have pointed to numerous governmental differences between Singapore and Iceland as evidence of this argument. As an example, finance journalist Cai Haoxiang has told businesstimes.com.sg: “To say a bubble exists in Singapore means there is a lack of control by the powers that be, which is anathema to the government’s perception of itself as a forward-looking architect of a well-planned and orderly economy.”
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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Staff from Qube Global Software will attend MIPIM Asia, the two day global leader summit, at the beginning of December 2015. Topics this year include Asia Pacific inbound and outbound investment flows, regional development opportunities and projects, and real estate trends.
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