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Commercial real estate Investment sentiment

Commercial real estate Investment sentiment

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The commercial real estate investment of Singapore see a significant rise of 72% at $1.9 billion in the first quarter of 2019 which is a sharp contrast of 36% decline for the Asia Pacific region where the same real estate for Hong Kong and Japan experienced a sharp decline of a 47% at $4.4 billion and a 52% at $5.7 billion respectively in the first three period of 2019.  At this rate with which the commercial real estate investment is going, it will be robust for the investment volume going forward into the rest of 2019.

New launch of mixed development where commercial and residential units are housed together will be of great investment interest given its popularity of such real estate entity from most investors with the upcoming Midtown Bay launching soon.  The Midtown Bay price will be keenly monitored as it is one of the rare site released by the government in the city district area closed to the Central Business District and the financial district of the Marina Bay.

The investment climate in the commercial property market contrasts greatly with the caution in the residential real estate sector from which the government had already put in place quite significant cooling measures to keep the residential property prices stable and within some degree of affordability. There appeared to have some significant impact on new condominium prices.

Singapore still remains highly attractive and popular in Asia for its real estate market in Asia among institutional investors helped by the presence of many banks and multinational firms much thanks to the presence of many banks and multinational firms despite its small land area and population of just 5.6 million. Last year, commercial transactions in the city-state amounted to some $9.5 billion. In addition, Singapore has also become a much sought after Asian base for technology companies, ranking second after Bangalore in India.

There is this recent government initiatives to rejuvenate older parts of the central business district by offering incentives and "sweeteners" to developers which could excinting activities to replace the older commercial buildings with hotels, residences mixed with commercial entities like offices and retail shops and F&B outlets to encourage and bring more life and happenings at weekday nights and during weekends.

The rents for office in Singapore have risen sharply for the past two years due the market forces of strong demand and limited supply with Grade A office  rents rising to $11.15 per square feet area in the first quarter of 2019 from $10.80 per square feet area in the last quarter of 2018 and from $9.70 in the first quarter of 2018.

How does the buoyant outlook of the commercial entity of the real estate market affect the residential sector especially the new condo, new launch condo?

Updates on new condo launch  :  Haus on Handy by CDL, One Pearl Bank by Capitaland

Mixed development launch : Midtown Bay by Guoccoland [ Last edited by seonewlaunch at 2019-6-12 15:10 ]


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