2 biggest reasons why Singapore is Courts Asia's hot market

Furniture and electrical demand could escalate.

According to DBS, Courts offers investors a unique exposure to Asean’s retail markets, growing middle class, rising disposable income, and increasing consumer appetite for credit on the back of rising incomes. 

In SIngaporeCourts Asia is set to benefit from the island's 1) population growth and 2) high domestic housing supply.

Here's more:

Beneficiary of population growth in Singapore. Singapore has targeted 6.9m population by 2030 from 5.3m population today. We believe a significant number of this population increase will consist of new foreign citizens, who will need homes and furnishings.

The market is expected to have 200,000 new homes by 2016, which will stimulate demand for electrical and home furnishing goods. We believe this will benefit Courts directly as demand for furniture and electrical appliances kicks in.

Higher domestic housing supply drives furniture and electrical demand in Singapore. Housing market imbalance caused by past under-building and high investment demand. The government is now ramping up public housing supply to match supply with pent-up demand in three to four years' time.

Pent-up demand for housing and the market imbalance has been caused by both under-building in the past and the high investment demand today. Outlook for home furnishing and electrical appliances will therefore be positive going forward. Ramped-up supply of HDB flats by 2016.

The Singapore government targets to have 200,000 new homes from this year to 2016, equivalent to building four new Ang Mo Kio towns.

The Housing Development Board (HDB) alone is expected to launch some 25,000 flats this year (including 13,600 Build-To-Order (BTO) flats), followed by another 26,000 to 29,000 flats annually in 2014 and 2015.