KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Singapore's private home prices rose less than expected, while rents decreased in the second quarter, reflecting the impact of government measures aimed at cooling the real estate market.
Key Points:
- Home Prices: Private home valuations increased by 0.9% from the previous quarter, lower than the earlier estimate of 1.1% and the 1.4% rise in the first quarter.
- Rental Market: Private rents fell by 0.8%, following a 1.9% drop in the previous quarter. This marks the third consecutive quarter of rent declines, although rents remain high after rising over 50% in the last four years.
- Government Measures: The government has implemented policies, including a 60% stamp duty on foreign property purchases, to cool the housing market.
- Market Resilience: Despite the cooling measures, local spending power remains strong, supporting demand. Bloomberg Intelligence analyst Ken Foong noted that "price growth is moderating" but healthy household balance sheets and families wanting to upgrade their homes could continue to drive demand.
- Price Forecast: Foong has raised his forecast for home prices to increase by up to 4% this year, revising from a "flattish" estimate earlier. He expects prices to rise by about 1.5% in the second half.
- Transaction Trends: Second-hand home transactions have driven much of the price growth, while new home sales slowed significantly. Developers sold only 1,889 units in the first half of the year, the lowest in at least two decades.
- Policy Outlook: Authorities have shown little intention to ease cooling measures, though they downplay the need for more. Central bank chief Chia Der Jiun stated that there are no signs of overexposure to real estate in the banking sector, indicating no immediate need for further measures.
The market adjustments come as Singapore grapples with housing affordability issues, a significant concern for the ruling party and new Prime Minister Lawrence Wong, ahead of the upcoming elections by the end of 2025.
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