Government Supplementary Budgets To Have Positive Impacts On The Commercial Real Estate Market

SINGAPORE – CBRE’s Head of Capital Markets for Singapore, Michael Tay has opined that the Government’s supplementary budgets are certain to have positive impacts on the commercial real estate market in Singapore. He said so in an interview conducted by Mingtiandi, expressing belief in an economic bounce-back for Singapore’s ‘increasingly volatile market.’

It may no longer be news that the property market has seen the demand for office space dwindle amid the effect of the coronavirus pandemic on the policies surrounding office work. But now, with the first wave of the spread over, Singapore, like numerous other countries, are looking to gradually return to normalcy.

To match the new and fluid standards of the COVID-19-altered world, commercial property investors are now circumspectly adjusting their approach to business. And Singapore, a major economic hub in Asia is not left out of the tussle to return to buoyancy especially because it is known as ‘a stable property market.’

“Singapore has a reputation as a stable property market with a strong track record for mid- to long-term capital value growth and preservation,” Michael Tay said, responding to the interest of local, international and intercontinental investors in Singapore’s property market.

He continued: “CBRE has been present in the city since 1958. Through this period, Singapore has established itself as an attractive investment destination due to key attributes such as a stable government, a transparent legal governance environment, a mature financial system, and its growth into a global city. In the current environment, such attributes are even more important to investors as they seek safe returns in an increasingly volatile market.”

Michael Tay, full of praises for Singapore and its development-minded government added in response to the expectations of investors and what is being done to make business in Singapore flourish: “While the Covid-19 situation has had an adverse impact on many industries, we are fortunate that in Singapore, the government has a comprehensive plan to support the economy and shore up businesses.

“The four supplementary budgets are aimed at helping to transform businesses, retrain local employees, retain jobs, and support households. Rebates have also been given out for tenants. All these measures are directly and indirectly supporting the economy which in turn, will have positive impacts on the real estate market.”

Acknowledging the impact of the current trend, Michael also maintained that office spaces will remain relevant in the region regardless. “It is too early to have a conclusion on the full impact of this trend, he said, “but some key fundamentals of the Singapore market and workforce makes us confident that the market will find a balance for office space to remain relevant in the mid- to long-term.”

Free Finding Service