With economic recovery gaining traction, preliminary real estate investment volume in Singapore increased 3.3% q-o-q to $7.317 bn for Q3 2021.
In Q3 2021, the Delta variant outbreak prompted a re-tightening of safe management measures. Despite the precarious situation, some positive signs were observed in Q3 2021.
The leasing performance of the business park market is divided into two tiers; leasing demand is concentrated within the City Fringe submarket while demand for space in the Rest of Island submarket remains subdued.
Recovery momentum for the retail market continued to be halted by retightened measures. There was recurring pressure on the submarkets that were affected by work-from-home measures and weak travel demand.
Despite heightened restrictions from end-Jul to mid-Aug 2021, market sentiment was not dampened. New home sales from Jan to Aug 2021 came to 9,265 units, 92.8% of 2020’s volume.
On the back of improving occupancies and strong leasing activity, landlords’ rental expectations increased. Occupier activity comprised of third-party logistics, food storage and electronics.