Commercial Property for Sale and Rent Singapore
Looking for a team of commercial property consultants to buy, sell or lease your commercial properties in Singapore? Then you are in the right environment. At CosySingapore, our team has the experience and have many customers in dealing with all sorts of commercial properties, such as offices, warehouses, general factories, storage, light and heavy industrial properties, medical suites and food factories.
When you have commercial property needs, do contact us and we will be most glad to assist you.
COMMERCIAL PROPERTY SINGAPORE 2021 / 2022
In Q3 2021, Singapore’s economy continued to recover amid improving global and trade outlook which has restored business confidence and job market prospects. According to advance GDP estimates, the Singapore economy grew by 6.5% YOY and 0.8% QOQ in Q3 2021 – with growth across most sectors. The economy is projected to grow by 6% to 7% this year.
The GDP Growth forecast by the Ministry of Trade and Industry slow to 3 to 5% in 2022. Singapore’s high vaccination rate with booster shots will continue to ease domestic and border restrictions. This will in turn support the recovery of consuming-facing sectors and ease labour shortages.
The office property market stalled in Q3 2021 in light of the re-tightening of safe management restrictions in July to August and subsequently in end-September that led to most workplaces returning to telecommuting as the default mode. While office sales and rentals have eased from the first half of the year’s stellar performance, market observations suggest that demand for office space remains resilient with a number of investors entering the market for ‘opportunistic’ buying of prime office assets before the market recovers further.
Office Rental Trend
The URA office rental index showed that rents declined by 3.5% in Q3 2021, a reversal from the 1.3% increase in the previous quarter. Among the primary drivers of CBD office demand were firms in fintech and family offices including financial institutions and investment funds.
Market sources observed that a number of occupiers have been moving into larger officeunits during this period, whereas smaller office units are falling behind in popularity. Some have cited the need for larger office spaces to enable better safe-distancing between workers while some firms have cited the need for more space to facilitate expansion plans for operations and increase in manpower amidst the economic recovery.
Singapore’s commitment towards the reopening of its economy continues to provide more certainty to stakeholders – that includes reopening borders to a number of countries which will allow more foreign working expatriates, investors and companies to enter Singapore. The impacts of which will boost the office market’s investment and occupier demand.
The opening of Vaccinated Travel Lanes (VTL) starting from 13 October will likely help to push up demand for office space with more foreign expatriates and investors gaining ease in entering Singapore.
Looking ahead, office prices and rentals are expected to bottom at the end of 2021 and is projected to show some positive upside in 2022 in light of limited Grade A new office supply over the near term along with the positive economic outlook.
One of Grade A Office Spaces for Sale is Plus at 20 Cecil.
The industrial property segment continued to recover in Q3 2021 amid the improvement in Singapore’s GDP. The manufacturing sector grew by 7.5% YOY in Q3 2021. Growth during the quarter was supported by output expansions in all clusters, except for the chemicals cluster.
Data from JTC showed that the overall occupancy rate stabilized at 90.1% in Q3 2021 with no change from the previous quarter.5
The industrial space market saw a flurry of transactions since the second half of 2020 owing to improved business sentiment.
Industrial Rental Trend
For the whole of 2021, industrial space rentals and prices are expected to remain stable, any growth in the future is likely to be muted due to the spike in supply in 2022 of nearly 2 million sq m of space and an additional 1.6 million sqm of space in the pipeline, to be completed between 2023 and 2024.
The momentum in the economy should help to support the industrial market, while it is uncertain how long this momentum will last and to what extent the China economic slowdown will spill over to Singapore’s economy. In the next few months, business sentiment is likely to be tempered, as occupiers grow more cautious about estimating their space requirements.
The key sectors that will drive demand for industrial space include the biomedical, pharmaceutical sectors as well as logistics and e-commerce
For those looking at B1 industrial units, there are beautiful units at Space 21 at Aljunied area.
Food Factory Getting More Attention
Another segment to look out for are Cloud Kitchens, set up by F&B operators for operations targeted at food deliveries. With the extended restrictions on dining-in under the ‘Stabilization Phase’ which started on 27 September and extended till 21 November, there would be more operators exploring options to set up cloud kitchens to expand their reach.
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