Sound business opportunities remain in Singapore's property development market, as demand is set to rise further on the back of Asia's growing prominence in the global economy, according to a major player.
While Singapore's recent measures to tame residential speculation signal overheating, Warren Bishop, CEO of Raffles Quay Asset Management (RQAM) - developer of Marina Bay Financial Centre (MBFC) - said that local demand, which made up for half of the residential tower sales, is unaffected. Other demand for the residential tower last year was from Malaysia, China, Indonesia and Hong Kong. Demand for office space is also strong, as Singapore's connectivity to the world is unaffected by the global crisis.
After completing the 4-billion Singapore dollar (Bt95.1 billion) mixed-use development, which comprises two residential and three office buildings, RQAM is waiting for the Singaporean government to release new land plots for development.
HUGE OFFICE DEMAND
"The market is quite robust. The long-term market is stable as Singapore is established as the location for headquarters in Southeast Asia," Bishop said.
While Hong Kong's office market serves business in North Asia, Singapore benefits largely from growth in Southeast Asia. Increasing demand in Indonesian commodities has sparked huge office demand in Singapore among new companies establishing a first-time presence in Southeast Asia.
The Singaporean government's policy will contribute to the property market's growth, Bishop said.