Weak residential demand, soft tourism outlook weighs on UOL in 2015

Even stellar office rents will moderate.

UOL Group warned today that weak residential demand and the soft domestic tourism outlook will weigh on its outlook this year,

UOL said that demand for private residential properties is expected to remain muted with the rising interest cost and effects of property cooling measures.

Even robust growth in office rentals is likely to moderate in anticipation of new supply in 2016, while retail rents could come under pressure amid rising occupancy costs and a tight labour market.

On the hospitality front, hotel room rates and occupancies are expected to moderate on back of the new supply of hotel rooms and a weaker growth in tourist arrivals in Singapore. Its overseas hotel portfolio isn’t expected to do much better, especially in China.