SG Morning Highlights | CapitaLand Investment Expands Japan Portfolio, Partners with Ambitious

Advancers / Decliners is 59 / 39, with 40.11M securities worth S$51.04M changing hands.

Despite declining interest rates and resilient economic growth, the re-election of Donald Trump introduces new uncertainties, particularly for trade-dependent economies like Singapore. DBS economist Chua Han Teng, speaking at the bank's Market Outlook 2025 event, emphasized the critical nature of the global landscape for Singapore. He noted easing global inflation due to post-pandemic supply chain relief, stable commodity prices, and previously high interest rates that dampened demand.

Chua highlighted that interest rates have likely peaked, with major central banks, including the US Federal Reserve, initiating cuts. By 2025, DBS anticipates steady or lower interest rates, except in Japan where hikes are expected. The global economic growth remains resilient, with Asia and ASEAN as key drivers. Singapore's economic growth is projected to be stable, with a dynamic outlook despite global volatility, supported by strong external demand in manufacturing and trade-related services.

However, Trump's return could heighten global economic volatility, particularly with his threats of a wider trade war and high tariffs on Chinese goods and other major trading partners. This poses a significant risk to open economies like Singapore, warranting vigilance. Despite these challenges, Chua sees continued opportunities for growth in sectors like electronics, where AI and data center demand boosts chip production, and in modern services where predicted rate cuts could stimulate financial market activities.

In November, HDB resale prices saw a significant year-on-year increase of 10.4% and a month-on-month rise of 0.9%, as reported by SRX and 99.co. Price hikes were observed across all room types, with 3-room flats increasing by 11.2%, 4-room by 10.8%, 5-room by 9.2%, and Executive flats by 5.1%. Both Mature and Non-Mature Estates experienced similar growth, with prices rising by 9.8% and 9.7% YoY, respectively.

Conversely, resale volumes declined, falling 8.7% YoY and 9.6% MoM, totaling 1,951 transactions for the month. The highest transaction recorded was $1.55 million for a 5-room flat in Dover Crescent. In Non-Mature estates, the top price was $1.05 million for a 5-room flat at Compassvale Drive. Additionally, 87 HDB resale flats, or 4% of total transactions, were sold for at least $1.0 million each.