Desmond Sim, Head of Research, Singapore and South East Asia :
market has entered a prolonged period of supply and demand imbalance. The
latest URA figures show that the market is trying to find its
equilibrium. As expected, the residential price index saw decreases in the
OCR. Strong sales in the CCR pushed the index, which boosted its resilience
against the price drops. On a positive note, due to some transactions observed
in the previously launched projects over the months, the stock of unsold
private residential units (uncompleted units) has come down by 3 per cent from
23,271 to 22,370, once again showing that underlying demand is still pushing
the market along.
rents fell likewise, a reflection of the weakness in the occupier market. The
rental index declined 2.1 per cent, with caution around impending supply
in the second half of 2016. Vacancy has corrected marginally due to the lack of
new supply. Vacancy fell 0.3 per cent in response to waning demand over the
last six months, but at a steady rate because of an absence of new supply. CBRE
does not view the volume as a concern but the scheduling of the completion of
supply which will complete in the next six months. At this point in the
cycle, relocation is primarily being driven by “flight to quality” and efficiency
gains rather than expansion.
retail rental index declined for five consecutive quarters, on the back of
labour constraints and weak retail performance, which has impacted retail space
demand. This is exacerbated by the impending volume of supply. However,
Singapore still remains attractive to new retailers although they are opening
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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