The latest Prime Asia Development Land Index divulge that the price of land sites primarily in Singapore focusing on residential and office ventures did not change in the second half of year 2015, accoring to Knight Frank. As for the whole year, the prices for residential sites especially in the city-state lay low by 5.8 percent. However, it was also noted that the prices for office sites spring up by six percent.
Knight Frank added that the soft interest in both office and housing rental markets due to external economic and domestic challenges correspond with the strong supply of pipelines in order to deminish the demand for land. Aside from these, the cooling measures throughout Singapore also brought in a significant impact in the curb of demand.
Companies in Singapore press on facing the continued challenges of economic restructing caused by the weak demand. On the other hand, the morale of home buyers was further afflicted with the rising probability of increasing interest rates and instability in the financial markets.
The index of Knight Franks trails the land prices in 13 major cities in Asia.