In a bid to tighten the spare capacity in the labour market and support the long-term inflation target, the Reserve Bank of Australia cut the official cash rate by another 25 basis points to a historical low of 1% in July.
The protracted monetary easing cycle forged by central banks around the world to rejuvenate economic activity has greatly boosted investment interest in commercial real estate, particularly in the office sector.
In our view, 5G will profoundly impact China’s real estate market, lifting demand for industrial real estate, offices, and data centres. Retail is also likely to gain, although 5G’s impacts will take time to be felt.
The US-China trade disputes have caused tremendous economic woes and financial market turmoil since March 2018, dampening market sentiment and business investment.
In this latest review of the Master Plan, there are no major changes to the land uses but the underlying strategy and “planning tone” has shifted. The approach to new concepts and ideas are not as “prescriptive” as it was in the eighties and nineties but more consultative and collaborative.
The political shift towards an unlimited presidency represents China’s most decisive change yet from the 1980s. Despite the cloud of a potential trade war with the US (which is increasingly low), this centralisation of power under Xi’s administration will reduce domestic political uncertainty, accelerate market and social reforms, and ultimately boost the country’s economic prospects.
The trade spat between the US and China that sent markets tumbling last week seems to be over. However, we may not be out of the woods yet as the situation depends on developments over the next week or so.
How will the latest measures unveiled under Singapore Budget 2018 affect the local real estate market?