CBRE released their overview on the outlook for the Asia Pacific commercial real estate market in 2023 recently - based on their reports, there is generally a positive outlook of property market moving forward.
Based on their observations, “From an economic perspective, inflation is expected to ease, and interest rates in the region are set to stabilise in the second half of 2023”. This will in turn help to propel property investments over the next few quarters.
With the recovery in mainland China expecting to pick up over the next few months, both office and residential demand will see a renewed surge once again.
In fact, Singapore's real estate investment volume grew 73% to $6.07b quarter over quarter (QoQ), CBRE revealed. This is even though there is a cautious stance in some investors due to the “sustained rate hikes and the deteriorating global macroeconomic backdrop,”. When these factors start to wane in time to come, it is to be expected that Singapore’s real estate investment volume will increase at a faster rate.
Across the different sectors, we see residential real estate investment still going strong - the sale of the three freehold properties propelled the volume vastly. The QoQ increase reached a 14.5% increase, totalling up to $583.8m.
Singapore’s property market has shown greater resilience amidst market uncertainties, and even during times where economic growth around the world is slowing down. This is also mainly because Singapore is politically stable, free from natural disasters and has a robust foundation in its economy. With a consistent track record of stability, it has become a highly sought after investment choice.
Strong demand extends to commercial properties as well. Ultra-high-net-worth (UHNW) investors, family offices and property investment funds have rose over the past few years, posing as another strong demand in the strata-title offices and commercial shophouses.
For the foreseeable future, Singapore will continue to remain competitive in terms of its property market and relevant investments. If you are looking to have a detailed analysis what properties you should look into, do not hesitate to reach out to know more.