SINGAPORE - Bloomberg
Singapore's luxury home prices might rebound and reach a record in two years as the city state's casino resorts opened and the private banking industry developed, SC Global Developments Ltd. Chief Executive Officer Simon Cheong said.
About 13 million square feet of office space was expected to be built in the next two years, compared with the current amount of about 50 million square feet, and companies have already signed leases before the buildings were completed, he said, pointing to his optimism that it would translate into demand for homes.
�2010 is a fair time frame,� said Cheong in an interview yesterday. �When the market turns around, you must have the product.�
Singapore's home prices, which rose to a record in 2007, are easing as the government predicts slower growth amid the U.S. subprime crisis. On Sunday, Prime Minister Lee Hsien Loong said the economic woes will continue �at least� into next year.
The government this month lowered its 2008 economic expansion forecast to between 4 percent and 5 percent from an earlier estimate of as much as 6 percent. The economy is expected to slow down as Asian manufacturers face declining demand from the U.S., the region's largest overseas market. Singapore's economy expanded 7.7 percent in 2007.