How the US Fed interest rates affect Singapore’s mortgage rates, and other news

For PropertyGuru’s real estate news roundup, understand how the US Fed interest rates affect Singapore’s mortgage rates and monthly repayment amounts. In other news, Cambodia importing more than USD400 million worth of iron and steel does not necessarily mean that the country’s housing sector is recovering. Lastly, Metro Manila’s office property market is expected to fully recover in 18 to 24 months.

How do US Fed interest rates impact mortgage rates in Singapore?

US Fed interest rates were cut for the first time since March 2020 in the latest September 2024 meeting. After many have wondered for months, “When will the Fed cut rates?” the benchmark interest rates were adjusted downwards by 0.5 percent; the current Fed interest rates now sit in the 4.75 percent to 5 percent range.

The bigger-than-expected cut comes after the US Fed kept interest rates at their current level since July 2023, following a series of aggressive hikes from a near-zero level in March 2022 following the COVID-19 pandemic.

So, what does this mean for Singaporean homeowners who have taken bank loans to finance their properties? PropertyGuru Singapore reports on the current Fed interest rates and how the Fed cutting rates will affect mortgage rates and the monthly repayment amounts of Singaporeans.

Pundits: Jump in steel imports may not reflect Cambodia’s real estate recovery

Cambodia imported more than USD400 million worth of iron and steel in the first eight months of the year, an increase of nearly 60 percent in the same period last year.

This has given some hope that the housing construction sector may gradually gain momentum and recover from its recent slump. Industry insiders have warned that this may not necessarily be the case.

Huy Vanna, secretary-general of the Cambodian Housing Development Association, told The Phnom Penh Post on 9th October that the increase in iron and steel imports does not necessarily indicate that Cambodia’s construction sector is experiencing strong growth, as iron and steel can be used for various purposes outside of construction.

Manila office market likely to fully recover in 18-24 months — Cushman

The Metro Manila office real estate market is expected to fully recover in 18 to 24 months, according to real estate services firm Cushman & Wakefield.

“The return to full recovery trajectory of the commercial real estate market will likely take place in 18 to 24 months, depending on the speed of take-up of vacant and newly completed office spaces,” Claro dG. Cordero, Jr., director and head of research, consulting and advisory services at Cushman & Wakefield, said in an e-mail on 16th Sept. and reported by BusinessWorld. He cited risks like the West Philippine Sea conflict, La Niña, sticky inflation, and higher-than-average interest rates.

“We will likely see an improvement in the office real estate’s vacancy rate and net absorption in the third quarter of 2024,” Mr. Cordero said. According to him, Metro Manila’s commercial real estate market is expected to grow by another 100,000 square meters next quarter.

The Property Report editors wrote this article. For more information, email: [email protected].