
Outlook On Singapore’s Office Market Moderated In Q3
SINGAPORE – The latest survey of the National University of Singapore’s Institute of Real Estate and Urban Studies (IREUS) showed that respondents became less bullish regarding the prospects of the city-state’s office market in the next six months, reported The Business Times on Wednesday evening (9 November, SGT).
During the 3rd quarter, the future net balance for the local office sector declined to 11 percent, a huge drop from the future net balance of 43 percent during the preceding quarter. Still, the office sector was among the only three markets with a positive future net balance.
While the current net balance for Singapore’s office market declined to 54 percent from 57 percent previously over the same period, the sector has the 2nd highest current net balance among the property markets.
Notably, the current net balance refers to the outlook of respondents on how Singapore’s office property market fared from now and until the last six months. On the other hand, the future net balance pertains to their expectations for the next six months.
Meanwhile, the Composite Sentiment Index score fell to 5.1 in Q3 2022 from 5.7 during the previous quarter, indicating less optimism across Singapore’s overall real estate market.
In particular, 100 percent of the respondents think rising inflation/ interest rates as the top potential risk that may adversely impact market sentiments in the next six months. Around 87 percent of respondents also indicated a slow-down in the global economy as a potential risk, while 81.1 percent identified rising costs of construction and tightening of financing/ liquidity in the debt market.
“The global headwinds and interest rate hikes by the US FED bring new uncertainties to the market,” said IREUS Director Sing Tien Foo.