Real estate investors are now being "careful and prudent" about deploying more capital. "There is a lot of uncertainty out there," says CapitaLand Investment's chief financial officer. "An investment freeze in the coming quarters is a significant risk," says an Oxford Economics lead economist.

CapitaLand Investment's profit fell 38% to $433 million Singaporean dollars ($316 million) for the first half of the year. "We're being very careful, patient and prudent, as I think many of our peers... are," says company's chief financial officer Andrew Lim.

"We are seeing interest rates rising rapidly across many countries in reaction to supply side and demand side inflation, which is something we haven't seen in a very long time," he says. "And I think many real estate and capital managers are being very careful about deploying capital and underwriting returns, just because we are just so uncertain"

Firms' capital deployment this year should hit a more "normalized" SG$3 billion, down from last year's SG$11 billion. In the recessionary periods since the 1980s, around half of the decline in the Group of 7 gross domestic product in negative quarters came from investment.

"An investment freeze in the coming quarters is a significant risk," he said. "It is a risk that we will not be able to cope with," he added. "We will have to work with the government to find a solution to the problem," he told CNN.
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