2022 Looking To Be A Positive Year For Singapore’s Property Markets

SINGAPORE – Edmund Tie & Company said the encouraging performance of most property sectors in Q1 2022 and in the coming months is setting the stage for a positive year ahead, reported The Business Times on Wednesday afternoon (20 April, SGT).

As a matter of fact, total real estate investment sales in Singapore surged by about 35 percent quarter-on-quarter to almost S$9.8 billion during the first three months of the year.

In the office sector, the limited stock of quality office spaces continued to support rental growth during the first quarter, but to different extents. While buildings in Marina Bay and Raffles Place recorded the highest increase in Premium and Grade A office rents, rents of Grade B offices in Shenton Way/Robinson Road/Tanjong Pagar have climbed for the first time, namely by 0.6 percent quarter-on-quarter since Q1 2020.

Moving forward, Edmund Tie expects the finance sector, especially the wealth management industry, will remain a major driver of office demand, while rents and capital values of strata office units are projected to increase because of the scarcity in future supply.

Aside from that, the relaxation of safety management measures (SMM) at the workplace and social events as well as easing border restrictions will cement investors’ robust confidence in Singapore’s commercial property market, stated the real estate consultancy.

Property developers are also expected to shift their focus to commercial-zoned sites, on top of riding the popularity of mixed-use projects, as the residential components of such projects are not subject to higher Additional Buyers’ Stamp Duty (ABSD) or Qualifying Certificate rules, noted Lam Chern Woon, Head of research and consulting, at Edmund Tie.

Lam also thinks that the recent ban on strata subdivision of the commercial properties in Singapore Central areas won’t have a drastic effect on property market sentiment, as the profiles of recent investors are primarily institutional, with a mid- to long-term investment horizon.