Buy / Sell / Lease Commercial Properties 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 Market 2020 Outlook
The impact of Convid-19 on the global commercial market is going to make a great difference for 2020 Outlook and it is still uncertain. Obvious sectors that will suffer are tourist-related businesses (food, hotel, attractions, etc) and retail, especially those who cater mainly to tourists.
From a macro view, Singapore GDP forecast by The Ministry of Trade and Industry was downgraded to 0.5. With more and more travel restrictions around the world, it is very difficult to have a gauge or predict the full impact on the Commercial market.
There are some sectors that are encouraging, which are the construction sector and the Information and Communication sectors with enterprise demand for technology solutions.
Support and Change of Environment
In aiding and stabilising the economy, the economy could look at some saving graces:
- A $4 billion Stabilisation and Support Package by Singapore government (announced in Feb 2020)
- Commercial lending with lower interest rates as the U.S. Federal Reserve cut its rates
- Easing of monetary policies, for a weaker appreciation of Singapore Dollar
Office Spaces Demand
- Business sentiments remain largely cautious, which may give way to lower capital expenditures and more renewals in 2020.
- More companies are opting for smaller spaces and are exploring modern office spaces at the city fringes.
- Less large deals above 30,000 sqft
- More developers and owners are more flexible in their conduct of sales
- Landlords are re-adjusting to attract or retain tenants
Industrial and Logistics Demand
- The expected recovery of the manufacturing sector is possibly curtailed due to the coronavirus outbreak, with delays, inability to supply goods and manpower disorder.
- The Sino-U.S. deal first phase seems to be offset by the Covid-19 outbreak
- The pipeline for warehouse supply continues to shrink, with a new supply of an estimated 1.53 m sqft per annum for 2020 till 2023, as compared to an average of 4.42 m sqft from 2010 to 2019.
- There is a sizeable vacant stock of warehouse usage, where over half of the stock is located in the west of Singapore.
- Landlords are pressured to redevelop assets which are older to be competitive and to catch up with the changes in the market.
There are still opportunities in the commercial property market for investors with a long term view. The current gloomy market is likely to present some great quality stock of property supply with attractive prices. Bearing in mind that the real estate cycle is cyclical; once the current situation is over, real estate will probably outperform the previous cycle.
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Commercial Properties Singapore
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+65 6100 8123