Many stakeholders feared that the property market would crash after the additional cooling measures were tightened on the residential sector and implemented for the first time on the industrial sector.

Despite a fall in residential demand, prices were generally still going up in 1Q 2013, albeit at a slower pace of 0.5%.

More interests were diverted to the commercial sector as it was the sector that was unaffected by the recent cooling measures. There was strong demand for commercial strata unit sales. There were strong take-up rates in the Central Business District (CBD) ie the Singapore Business Federation Centre, Oxley Tower and Robinson Square.

As reported by Ministry of Trade and Industry, Singapore’s growth could see a gradual improvement for the rest of 2013, with GDP forecasts coming in at between 1% and 3%. Despite falling rents and compressing yields, the low interest rates and the safe haven environment offer good prospects for Singapore as a continued Global-Asia hub that could help attract demand for investments.