SG Morning Highlights | CapitaLand Ascott Trust Sells Japanese Property for S$53.1 Million

Advancers / Decliners is 97 to 49, with 64.83M million securities worth S$96.77M million changing hands.

The 2024 F1 Singapore Grand Prix has significantly boosted tourism, with a more than 20% increase in international visitors and a 30% rise in tourist spending, as reported by Visa. The event particularly attracted high-net-worth individuals, with their numbers surging by over 70%, and their spending increasing by a similar margin. Malaysia led the influx with a 60% increase in visitors, followed closely by Japan (57%) and Hong Kong (53%). Hong Kong tourists topped spending, showcasing a more than 200% increase, primarily on entertainment and dining. Other significant contributions came from Australia and the UK, each recording around an 80% rise in spending, while the US and Japan also saw notable increases. This influx highlights the substantial economic impact of hosting the Grand Prix, attracting affluent tourists and boosting key sectors across the city.

The recent 14.9% month-on-month decline in HDB resale volume, which saw transactions drop to 2,217 units in September, has sparked debate among real estate experts regarding the influence of governmental cooling measures. PropNex suggests that the reduction in the Loan-to-Value (LTV) limit for HDB housing loans by five percentage points may have caused both buyers and sellers to delay transactions as they assess the impacts of this change. OrangeTee concurs, noting that buyers might need more time to reassess their financing options, contributing to a temporary pullback in market activity. However, Huttons argues against this notion, attributing the dip in transactions to a constrained supply of available homes rather than the cooling measures, pointing out that it typically takes about two months from submission to acceptance in the HDB system. Huttons also observed that constrained supply has led to sellers maintaining higher asking prices, which in turn has driven up HDB resale prices by 1.8% in September. Both PropNex and OrangeTee also highlighted the upcoming Build-to-Order (BTO) sales exercise in October as a potential factor influencing the resale market, with the launch expected to attract significant buyer interest, especially with the introduction of new Plus flats and the eligibility extension to singles.