Singapore Office Market To Remain Healthy In 2023, Says Savills
SINGAPORE – Despite rising macroeconomic headwinds, Savills Research stated that the city-state’s overall property market would remain a bright spot globally, reported The Edge on Wednesday morning (4 January, SGT).
The real estate consultancy said that while property markets across the world are facing inflation and recession issues, Singapore’s real estate market is slated to stay resilient.
“In general, Singapore’s real estate market should be in a good position to ward off the ill-effects of global economic problems and global political tensions,” noted Alan Cheong, Executive Director of Savills Research and Consultancy in Singapore.
He highlighted that the local real estate markets remain supported by a relative lack of stock for most asset types, whereas property developers in the residential sector have robust financial holding power. Consequently, that market is expected to be able to “overcome the effects of higher interest rates and economic slowdown”.
Other property categories show healthy indicators, including Singapore’s office market, which continues to record increasing office rents for office buildings in the central business district (CBD) amidst declining office vacancy levels.
Aside from that, data from MSCI Real Assets showed that property investment in the city-state surged by 47 percent year-on-year to S$9.1 billion during the first nine months of 2022.
Meanwhile, the International Monetary Fund (IMF) expects Singapore’s economy to expand by 2.3 percent for the whole of 2023, outperforming the European Union (0.5 percent) and the United States (1 percent).