Loh notes in his report dated Sep 19 that higher interest rates have resulted in a real estate downturn in other developed markets — it remains to be seen if Singapore will follow suit. “Since the onset of higher interest rates in early-2022, countries such as Australia, Canada and New Zealand and regions in Western Europe have seen signs of sharper cooling,” he says.
UOB Kay Hian analyst Adrian Loh has maintained his “overweight” rating for the property sector in Singapore, with public and private property prices remaining strong in Singapore in 2022.
However, with the Singapore government doubling government land sales (GLS) in 2022 compared to 2021, potentially injecting significant levels of supply in the near to medium term, and the increase of planned private residential units, Loh prefers property stocks with less exposure to the Singapore market.
