22 January 2016, Singapore - Desmond Sim, Head, CBRE Research, Singapore and South East Asia comments on the URA Real Estate Stats in Q4 2015.
“Indices
across residential, retail and office now point downwards, based on the latest
figures from the URA. There is, however, a silver lining in the residential
market. The market seems to be steadily absorbing the inventory of unsold units
in existing projects as well as those projects which are still under
construction - helped by a steady pool of buyers who continue to purchase homes
as well as the government’s drastic cut in the number of new sites being
offered for sale. Prices have once again fallen, albeit at a slower pace. The
residential price index in Q4 2015 registered the slowest rate of decline since
Q3 2013 when the full set of measures was implemented. If the decline continues
at this controlled, measured pace, the residential market is poised for a soft
landing.
The URA indices for retail and office have also fallen quarter on quarter The figures indicate negative absorption for office and retail space. Retail rents have dipped 4 per cent from a year ago, reflecting the outpacing of supply over demand, weak demand for space due to headwinds with more tenants choosing to consolidate rather than expand. The retail market is restructuring in response to the changing patterns in consumer spending with the use of technology in retail.
The negative absorption of office space is unsurprising, given the slowdown in demand for space. However, as a result of limited major office completions the whole of 2015, vacancy stayed at 9.5 per cent. Rents have corrected q-on-q in anticipation of the impending supply coming in the later half of 2016.”
Disclaimer:
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