Singapore real estate market to remain bright spot: Savills
According to Savills Research, the real estate market in Singapore will continue to be a bright light internationally after Res Course Date is announced, despite the mounting macroeconomic challenges. Even while growing inflation and fears of recession have put a shadow over global real estate markets, the city-state is positioned to remain robust even in the face of these challenges.
Alan Cheong, executive director of Savills Singapore Research and Consultancy, believes that Singapore’s real estate market should be in a good position to ward off the negative effects of global economic problems and global political tensions. “In general, Singapore’s real estate market should be in a good position to ward off the adverse effects of both,” he says.
According to Cheong, the Singapore market is still supported by a relative dearth of supply across the majority of its sectors, and developers operating in the residential market have considerable financial holding power. The market is able to “overcome the consequences of increased interest rates and economic slowdown” as a result of this.
According to information provided by MSCI Real Assets, the first three quarters of 2022 in Singapore witnessed real estate investment agreements totaling $9.1 billion. This represents a 47% increase over the same time period in 2021. Savills also highlights that the residential rental sector charted strong performance, with rents for private residential properties jumping 8.6% quarter-over-quarter in 3Q2022, the highest quarterly increase in the past 15 years. This was the highest quarterly increase in the residential rental sector.
The office sector, which continues to witness increasing rents for CBD offices despite dropping vacancy rates, as well as the logistic property sector, which is predicted to continue expanding rents in 2023, are also examples of industries that exhibit good signs.
The International Monetary Fund (IMF) believes that Singapore’s gross domestic product (GDP) would expand by 2.3% in 2023, which will be much higher than the GDP growth rates that are predicted for the United States (1%), and the European Union (0.5%) correspondingly.
Savills also observes that other Asian economies, such as China, Vietnam, Indonesia, and India, are expected to lead the expansion of the global economy in the next years.
According to the consultant, increasing levels of foreign direct investment and ongoing government changes in Vietnam are driving increased levels of interest from international investors in the country’s real estate sector. For instance, Singapore’s CapitaLand said earlier this year that it will purchase land in Ho Chi Minh City for a mixed-use complex at an estimated cost of one billion dollars.
Due to COVID-19, The Florence Residences Showflat is open for online bookings. You can now register online to receive direct developer discount offers and prices.