Chart of the Day: Investment activity to remain tepid amid rising interest rates

And lack of investment-grade assets.

The series of property cooling regulations remain in place and continues to take a toll on different sectors across Singapore’s property market.

According to a report by Savills, investment activity is expected to remain lacklustre in Singapore against a backdrop of concerns over rising interest rates and lack of investment-grade assets.

Savills adds that rising real estate prices and consequently diminishing yields in the overseas markets have lead some local developers to preserve their financial resources for opportunities that may arise locally.

On a brighter note, the tender of the commercial site at Paya Lebar, which closed on 31st March with a top bid of S$1.67 billion, may revive interest in what otherwise looks to be a dull market in the second quarter of 2015.