More Chinese tech firms including Tencent Holdings setting up shop in Singapore and a steady increase of new home sales despite economic headwinds.
FLOW OF CHINESE TECH FIRMS TO SINGAPORE BODES WELL FOR JOBS, PROPERTY SECTOR
The Business Times - September 17
Tencent Holdings is the latest in a string of Chinese tech companies that have set up shop in Singapore.
But the Internet giant is not likely to be the last, with Charmian Aw, a Reed Smith lawyer who specialises in technology, calling the Republic "a highly attractive infocomm and digital technology hub for the region".
As a confluence of factors brings more Chinese tech players into Singapore, the local job and property markets could get an uplift, analysts told The Business Times.
Rick Thomas, Executive Director and Head, Occupier Services:
Singapore is a strategic position for companies to set up their regional Asia Pacific hub; some of China’s largest technology and financial services companies are already expanding their footprint here.
Tencent will develop a full-scale comprehensive hub that will look to deepen its exposure to fast-growing Southeast Asia markets, as well as to capture opportunities within Singapore given the rapid pace of digitisation and Internet-based solutions.
RECESSION? 2020 NEW HOME SALES COULD TOP 2019'S
The Business Times - September 16
Despite economic headwinds and the Hungry Ghost Festival, developers in Singapore sold 1,256 private homes in August, 16% higher than July's take-up.
This is the fourth consecutive month of increase in monthly sales since the circuit breaker in April this year, analysts noted. The buoyant recovery has led to upward revisions by analysts with some even projecting that 2020 transactions may even exceed 2019's 9,912.
Steven Tan, Senior Director, Capital Markets and Investment Services:
The numbers reflect the positive sentiment of the general public towards the COVID-19 situation in Singapore; people are confident that the virus will be contained. Another factor that contributed to the surge in the number of sales is probably the low-interest-rate environment.
This pattern will sustain because there is no strong indication that the economy is turning around. The general rule to spot a market recovery is to look at the stock market – if the stock market is on an uptrend for three consecutive months, then we can conclude that the market is recovering.
Tricia Song, Director and Head of Research:
The strong sales in August pointed to yet-satiated pent-up demand as well as confidence in the property market, which have gone against the worsening economic conditions and rising unemployment. August’s sales also signalled buyers’ propensity for “value”, as attractively-priced freehold city fringe projects garnered the most interest. Read our full comments and analysis of the URA home sales for August 2020 here.
