ELECTION UNLIKELY TO AFFECT PROPERTY PRICES, SAYS BANK CHIEF

ELECTION UNLIKELY TO AFFECT PROPERTY PRICES, SAYS BANK CHIEF
May 5, 2011
 
Singapore’s elections are unlikely to affect property prices, according to Aamir Rahim, Chief Executive at Citi Private Bank (Asia Pacific).

“Investors look at simple facts: Singapore’s stability and continuity in its policy regime are important. Stability is the most important criteria in any market, even for equity markets.”

The bank will host its Asia Pacific property conference for more than 200 clients. The conference features discussions on major issues such as the outlook for equity markets in Hong Kong, China and Singapore property, including the Real Estate Investment Trusts (REITs).

A joint annual report by Knight Frank and Citi Private Bank on the world’s wealth revealed that Singapore is largely the location of choice among affluent East Asians and Indians seeking to acquire a second property overseas.

The report also found that Singapore luxury homes had experienced the third largest price increase of 18 percent in 2010, behind Shanghai and Mumbai.

Mr. Rahim noted that “property is critical because it is part of the decision that the wealthy make in terms of where they want to establish themselves. East Asians who seek to change their country of residence favour Singapore…and property plays a (very) key role in that decision.”

Mr. Rahim remains positive about the private bank’s growth this year, which he anticipates to be roughly in line with the previous year’s 20 percent growth. The business of the bank grows at approximately twice the gross domestic product (GDP) rate. Asian economies are expected to grow by 7.8 percent this year.

Info courtesy - PropertyGuru