Lion City Edges Closer To Property Index, OTC Plays
The National University of Singapore is set to put out for public consultation a proposal for its Singapore Residential Price Index, a benchmark that market watchers are confident will help sustain an OTC derivative market. "We will be working on some details this month ahead of a public consultation exercise which we hope to conduct in October," according to an official closely involved with the index creation..
The NUS designed the index with government backing and submitted its proposal to the government last month for initial, private feedback. The delayed index—it was scheduled to launch in Jun 2007—will cover residential and commercial property data.
Steve Moore, head of Asia Pacific property derivatives at GFI Colliers, is keen on the move. "The current economic climate has created uncertainty in global real estate returns and hence hedging direct real estate risk in Singapore will soon be a possibility."
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