China’s unexpected interest rate cuts could benefit Singapore developers in China, reported the media.Last Friday, the People’s Bank of China (PBOC) lowered is benchmark lending rate by 40 base points amid a slowdown in China’s growth.

Last Friday, the People’s Bank of China (PBOC) lowered is benchmark lending rate by 40 base points amid a slowdown in China’s growth.

According to DBS, lowering interest rates could boost buyer sentiment and housing affordability, benefiting Singapore property developers with significant exposure in China’s residential market.

Keppel Land has the biggest exposure to the Chinese residential sector, with residential projects in China accounting for 35 percent of its assets.

It is followed by CapitaLand and Frasers Centrepoint, with about 13 percent and six percent exposure to the Chinese residential market respectively.

DBS said, “As discussed by our DBS China property team, this interest rate cut could be a potential inflection point to help sustain the recovery in sales seen in the latest October statistics.”

 

Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg

 

Malaysia Property Show in Singapore, December 2014

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