Commercial, Retail and Residential – when will Singapore’s property prices recover?

Property

By 10% Per Annum • September 4, 2016

It is no doubt that Singapore's property prices are currently stuck in a rut. However, commercial, residential and retail (even hospitality room rates and industrial rents) spaces are trending slightly differently and hence are likely to recover at different times.

Commercial

Singapore's prime commercial rental rates have been declining since the beginning of 2015.

Source: URA with illustrations by author

While corporates may be crying for joy, this is not exactly great news for investors of REITs or construction companies.

DUO, Marina One and Tanjong Pagar Centre will all be launched between now and 2017. This looming supply glut, coupled with the current situation of sluggish demand, points to the fact that office rental will only start bottoming out in 2018.

Residential

Singapore's residential prices begun its decline much earlier than the commercial sector - as early as mid 2013. This decline was brought about by the two prong ...

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