Singapore’s property market is set to recover quicker than any Southeast Asian country
According to the South China Morning Post, Singapore’s property market is set to recover quicker than any Southeast Asian country as it quickens its pace in vaccinating its population.
Knight Frank acknowledged the region’s resiliency, saying that despite the challenges posed by the pandemic, the property market stays afloat, with prices increasing approximately 13 percent on average over the last two years.
During the October to December period, prices for private residences went up for the seventh consecutive quarter. For the entire year, it rose by 10.6 percent, which was the most since 2010. Its upward momentum may face challenges, however, as the latest round of cooling measures are causing homebuyers to re-evaluate their decisions.
Office spaces in the financial hub are also predicted to thrive this year after bottoming out in 2021 as lease prices are set to increase by 10 percent.
CBRE noted that the increase in grade A office rents is much higher than the one percent average forecast for the rest of Asia-Pacific.
“The gradual reopening of the economy, positive sentiment, coupled [with] a tight supply situation, led to an overall increase in office rents islandwide,” said CBRE’s head of research, Southeast Asia, Tricia Song in The Business Times.
Singapore Business Review shared that from 2022 to 2024, the total new supply is expected to reach 3.76 million sq ft. This puts the total annual average supply to 1.25 million sq ft.
The retail sector is also predicted to see an increase in broad-based growth in islandwide prime floor rents in the second half of 2022.
“Prime locations will remain keenly sought after, as retailers take advantage of the tenant-favoured market to secure lower rents and better locations,” notes CBRE.
The Property Report editors wrote this article. For more information, email: [email protected].
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