Singapore’s economy contracted at an annualized
4.6 percent in the three months to June and the local dollar has weakened. Rental and capital growth in the real estate market, notably in the residential segment, have fallen, primarily due to government measures to cool the property market and make housing affordable for the masses. Rising house prices have previously stoked public discontent over the city’s reliance on foreign workers. Many blamed the influx of workers for overcrowding and soaring home prices.
Against this backdrop, the country is heading to the polls on September 11. Singapore’s Prime Minister Lee Hsien Loong faces one of his toughest challenges yet in this week’s general election. Besides a weakening economy, his ruling People’s Action Party, founded by his father, the late Lee Kuan Yew, is facing an increasingly vocal opposition. For the first time since independence, all of Singapore’s 2.5 million registered votes will have more than one party to choose from, with opposition candidates standing in all 89 seats across thecountry’s 29 voting districts.
JLL’s Head of Southeast Asia Research, Dr Chua Yang Liang, gives his insights on how will the election results impact government policy and the real estate market.