Singpore residential market looks strong: CBRE: The residential sector has seen a strong response to selected new projects, pushing the private home sales volume to 5,200 units, driven partly by a large supply of about 5,500 new homes for sale in the quarter, as well as high liquidity and low interest rates, according to CBRE Research.
“We notice in Q1 2012 that buyers’ interest was project-specific, and mixed projects comprising residential projects with retail component have become the favourites,” it noted. In addition, attractive discounts and rebates by developers also helped push up sales. The strong sales momentum will likely continue in Q2 2012.
Over in the office sector, aside from Marina Bay Financial Centre (MBFC) Tower 3, new office supply will likely be limited for the rest of the year.
“MBFC Tower 3 is by far the largest office development in 2012 and represents the last significant new office building in the last three years. With the exception of the development in Pickering Street, which is already pre-let to AGC, there is no other new office supply expected this year,” noted CBRE. Overall, a total of 3.8 million sq ft have been stocked in Q1 2012, representing a 7.27 percent vacancy rate, which is 57 basis points higher than in Q4 2011 and 162 basis points more from the same period last year.
Meanwhile, in the industrial segment, global economic uncertainties have placed a heavy burden on demand.
“The current focus on compliant use of industrial space, coupled with a weak economic sentiment will lead to stabilising rents for factories and warehouses in Q2 2012. Hi-Tech, business and science parks will experience slight downward pressure on rents, however, demand for such spaces will be more resilient due to the inherent nature of the asset class,” noted the report.
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