Even though there are some cooling measures in place right now for residential properties, these may very well be a sign that the investments go to other sectors. It seems that right now the retail investors which have a good capital outlay can very well go to the conserved shophouses and some offices. But there are other investors are going to the industrial market.
Apparently, the commercial rents are doing super well right now, since rents here seem to last for a longer time and they are also a lot more stable when compared to others similar to this. The growth is not massive, but it is 3.9% higher when compared to the last year. A lot of people say that this has to go with the lack of grade A space that pretty much has to push people towards these regions. It’s definitely not something very problematic, but it certainly has its moments and benefits, that’s for sure.
An interesting thing to note is that companies tend to opt for the premium buildings, as they have plenty of place and floors as well. But even the smaller buildings tend to get the attention they need. There was a lot of leasing activity late this year when compared to the same time last year. The supply seems to continue to be very good for the office landlords until 2020.
This is not over yet. There’s a new wave of supply of around 1.9 million square feet that is set to arrive in 2021, which includes CapitaSpring as well as the Central Boulevard government land site sales. Even if that’s a long way away for some people, it’s still nice to see something like this actually exist, as it’s really nice. Another thing to note that the remainder of the year may very well see less occupation this time around, especially when it comes to co-working.
Despite all of that, the fact that there’s a huge interest in commercial investments and rentals is a good sign. This will allow the local economy to grow quite a lot, something that’s increasingly important nowadays due to the way the entire situation works. It’s certainly not ideal, but then again this may very well be the type of thing that can re-adapt and take things to the next level for Singapore. In the end, there are plenty of benefits and features to have here for us, as economic growth from new companies can only give great results for everyone!
New launch condos in the market