Despite heightened restrictions from mid-May 2021, preliminary real estate investment volume in Singapore grew by 44.5% q-o-q, to $5.900 bn for Q2 2021.
The office market performance in Q2 2021 was a tale of two halves. Net absorption was -0.36 mil sq. ft. in Q2 2021, which was contributed by the earlier relocation moves and downsizing efforts by occupiers.
Overall leasing interest was relatively subdued, with renewals as a key feature in leasing activity this quarter. Islandwide net absorption was 0.13 mil sq. ft. in Q2 2021.
With work-from-home remaining as the default and tourism borders still closed, the retail market continue to face pressures though the magnitude of rental decline has slowed.
Despite heightened restrictions from mid-May 2021, the strong performance in the residential market has further shored up homebuyers’ confidence and take-up of new launches.
Space availability for the warehouse and prime logistics remained tight, hence rents for both segments began to materialise at a quicker pace, by 1.3% q-o-q and 2.9% q-o-q respectively.