Q1 2024 Singapore Figures report provides the latest commentary and data on net absorption, rents, vacancy, supply and other key metrics in Singapore's office, business parks, retail, residential and industrial markets, along with an analysis of real estate investment activity.
Office: Low vacancies, limited supply and flight to quality continued to drive office rental growth. Net absorption was relatively flat in Q1 with no fresh supply.
Business Parks: Overall demand for business parks remained cautious. Shadow space increased due to consolidations within the banking and financial sector.
Retail: The Orchard Road and City Hall/ Marina Centre submarkets continued to outperform in Q1 2024. As such, prime islandwide retail rents sustained its recovery, rising by 1.0% q-o-q.
Residential: New home sales remained muted in Q1 2024 despite a pickup in launches. Private home prices extended their increase but the pace of growth moderated.
Industrial: Given limited options for occupiers seeking prime logistics facilities in the near term, rental performance is still expected to be steady in 2024.
Investment: Preliminary real estate investment volumes in Singapore for Q1 2024 fell 23.4% q-o-q (down 30.9% y-o-y) to $4.372 bn, mainly on a decline in public land sales.
This report was originally published in https://www.cbre.com.sg/insights/figures/singapore-figures-q1-2024
Download the Report Read MoreAsia Pacific has emerged as a dominant source and destination for global capital. Singapore, Hong Kong, China and Japan were among the top ten sources of global cross border capital in H2 2023. Notably, Singapore and Hong Kong were the second and thirds biggest sources of global cross border capital respectively.
Japan, China, Australia and Singapore were among the top ten destinations for global cross border capital in H2 2023.
Asia Pacific performed best in 2023, with investment volumes reaching 91% of their 10-year average. While North America reached 68%, the Europe, Middle East and Africa (EMEA) region reached just over half (52%) of its 10-year average. In 2023, global investment volumes were among the lowest since the global financial crisis with overall investment volumes at 75% of the 10-year average.
The region’s performance was backed by a significant pick-up in investment activities in Q4, primarily in December, signalling the region’s strong potential for recovery in the year ahead. Colliers’ global report highlighted that the forecasts for 2024 and 2025 present Asia Pacific’s strong growth story.
Download the Report Read MoreThere are signs that interest rates have peaked in some markets in APAC with expectation on more market activities and a gradual recovery in 2024.
The APAC real estate sector was experiencing a low transaction environment in Q4 2023. Owners, investors, and occupiers remained cautious about real estate investments with a lot longer due diligent process. However, the signs of peak interest rate in some APAC markets are resulting a more positive sentiment towards investments in 2024.
Key Highlights in Q4 2023:
Office Sector
Retail Sector
Industrial Sector
Asia Pacific Trends Q3 2023 features in-depth and up-to-date data and insights on the Office, Retail, Industrial & Logistics and Investment markets across the region. Key trends include:
Office:
Retail:
Industrial & Logistics:
Investment:
Download Office Trends Download Retail Trends Download Logistics Trends Download Investment Trends
Read MoreCBRE professionals in Asia Pacific observe that investor risk appetite remains low amid a delayed recovery in investment activity. A majority of respondents expect a recovery from Q2 2024 onwards, amid limited expectations of interest rate cuts in the first half of 2024.
Selling pressure persists across most of the region, with the primary exception of India which is receiving increased buying interest from investors. Most investors – excluding private investors and institutional investors/LPs – also have higher intentions to sell than in Q1 2023.
The survey reveals that the price gap is widening for assets with strong fundamentals, such as multifamily, institutional-grade modern logistics facilities, prime shopping malls, cold storage and data centres.
While institutional-grade logistics remains the most popular sector for investors, interest in retail has increased. Slow re-pricing is prompting investors to seek alternative or niche sectors, with real estate debt strategies gaining traction among alternatives.
Cap rates are set to expand across Asia Pacific, reflecting a prolonged high interest rate environment, and as re-pricing lags behind the US and Europe.
This report was originally published in https://www.cbre.com/insights/figures/asia-pacific-cap-rate-survey-2023-q3
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