22 January 2016, Singapore - Desmond Sim, Head, CBRE Research, Singapore and South East Asia comments on the URA Real Estate Stats in Q4 2015.
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
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
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.”
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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