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Singapore’s office & hospitality sectors recover in Q2 2022

Furthermore, it is a top-ranking destination for investors looking into the luxury property market

The hospitality sector benefitted from the reopening of Singapore’s borders. martinho Smart/Shutterstock

According to a recent report, the office and hospitality markets recovered after a shift in consumption from goods to services.

“As Singapore’s economy and borders started to open and return to pre-pandemic normalcy. Real estate sectors such as offices and hospitality that served the service industries saw higher investment demand and growth,” said Wong Xian Yang, Head of Research of Cushman & Wakefield (C&W) Singapore, in an exclusive interview with Singapore Business Review.

He noted that more money had been invested in offices as investors grew more confident and people started returning to the workplace.

More: Singapore sees 4.8% growth YoY in Q2, denies the possibility of overheating

The Financial Times reported that rents for prime office spaces in Singapore reached SGD10.7 (USD7.7) per sq ft in Q2 2022, increasing 2.7 percent from the previous quarter. This is the fifth consecutive quarter that landlords in the city-state’s financial hub have seen growth.

The hospitality sector also benefitted from the reopening of Singapore’s borders. The average room rate in hotels in the Lion City was up 63.1 percent YoY and the average occupancy rate also went up from 22.6 percent YoY to 77 percent.

In recent years, corporate reports point to Singapore as a leader in emerging trends in real estate, according to e-architect. As an example, Singapore’s rental growth over the years has been exemplary compared to the rest of Asia-Pacific. 

The reports suggest that high net worth (HNW) investors choose this destination over others in the region. Due to Singapore’s leading investment prospects and best city development prospects, this is especially true.

Furthermore, it is a top-ranking destination for investors looking into the luxury property market due to its robust stability factors in natural disasters and geopolitics.

Indeed, things have been looking up for Singapore’s real estate market, and it is only a matter of time before other segments catch up with the recovery.

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

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