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Knight Frank, in its latest report titled “Singapore Residential Q3 2020 Transaction Volume Rebounded in Q3 Due to Pent-up Demand” highlighted the positive outlook that lies ahead for Singapore’s residential market. Some of the key perspectives include:

• Prices of non-landed private residential properties (excluding ECs) defied recessionary fears, holding flat at 148.7 in Q3 2020** after rising by 0.4% in the second quarter of the year. Transaction volumes of non-landed residential properties (excluding ECs) more than doubled from the previous quarter, recording 5,895 units in Q3 2020*.
• Pent-up demand from buyers who deferred their purchases coupled with low interest-rates drove the pick-up in sales momentum from both needs-based buyers and those who feared that prices might increase in the near-term.
• The resale market also rebounded in Q3 on the heels of the new sale market. A total of 2,480 units were transacted in the secondary market, more than three times the 758 resale units sold last quarter*. More resale transactions were completed as in-person viewings resumed in Phase 2 and owners grew more confident in allowing viewings with falling COVID-19 cases.

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While office rents continued to drop in the downbeat market, tenants seized the opportunity for better relocation options, resulting in high activity in the leasing market during the month. However, landlords further softened their approach and adopted a more realistic stance in negotiating leasing terms to secure tenants, so the majority of tenants tended to renew their leases. As a result, new take-up of Grade-A office space was at an exceptional low level during the month, particularly in the CBD area.

Amid the challenging economic environment, cost-competitiveness remains a pressing consideration for tenants. Going into 2021, we therefore expect to see a continuing decentralisation trend. We also foresee rising demand for co-working space, as more companies, especially small and medium-sized enterprises (SMEs), which have been heavily impacted by the coronavirus-induced recession to actively explore flexible leasing options.

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• 美国即将进行总统大选，全球经济复苏仍存在许多不定因素，而投资者多出于风险规避心理，九月地区内地产股票出现下滑。
• 九月GPR/APREA综合房地产投资信托指数下挫1.4%，终止了自四月以来的涨势，表现逊于大盘，后者下跌1.1%。
• 在低利率，高负债能力的支持下，地区房产信托雄心勃勃，逐渐恢复停滞的交易。根据房地产资本分析公司Real Capital Analytics数据显示，就收购体量而言，第二季度体量为2010年以来的历史最低值，而第三季度地区房产信托收购总额超41亿美元。

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The region’s property stocks lost ground in September as risk aversion gripped investors. ahead of a US Presidential election and continued concerns that a global economic recovery remains volatile.

The GPR/APREA Composite REIT Index lost 1.4% in September, snapping a string of monthly gains since April, underperforming the wider market which declined by a smaller 1.1%.

Supported by low interest rates and higher debt capacity, the region’s REITs are turning acquisitive and resuming stalled deals. According to Real Capital Analytics, the region’s REITs expended over US$4.1 billion in acquisitions in the third quarter, after posting a record low quarterly volume in the second quarter since 2010.

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