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1034059

Singapore Real Estate Market - Growth, Trends, COVID 19 Impact and Forecasts ((2022 - 2027)

Published: | Mordor Intelligence Pvt Ltd | 150 Pages | Delivery time: 2-3 business days

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Singapore Real Estate Market - Growth, Trends, COVID 19 Impact and Forecasts ((2022 - 2027)
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 150 Pages
Delivery time: 2-3 business days
  • Description
  • Table of Contents

Singapore's real estate market is a safe haven for foreign investors and the property value seems to be growing steadily. Amidst the expected decline in transaction volume and prices of prime non-landed residences due to the recessionary environment brought about by the COVID-19, the Singapore real estate market is expected to record growth in 2021. According to sources, the prime non-landed residential segment registered sales amounted to USD 919.5 million in the second half of 2020, signifying a 34.2% half-yearly increase from USD 685.1 million in the first half of 2020. Large technology firms in Singapore are further set to drive office demand, co-working space in the near future as Singapore is emerging as a technology hub.

In the hospitality industry, the Singapore Tourism Board (STB) launched BOOST (Building On Opportunities to Strengthen Tourism) i.e. a USD 90 million initiative that is aimed at increasing the tourist influx within Singapore. Business Travel, Meetings, Incentive Travel, Conventions, and Exhibitions (BTMCE) are some of the major sources of revenue for the country's hotel real estate industry. The extended low-interest-rate environment will increase the attractiveness of commercial real estate in Singapore, especially those that can provide stable returns. The outlook of an improving property market of Singapore, affordable loans and relatively more inexpensive small apartments have attracted many investors to real estate.

Key Market Trends

Rise in residential segment of Singapore real estate market

Singapore's housing market remains healthy, despite a struggling economy caused by the COVID-19 pandemic. The private residential property index rose by 2.21% during 2020, following y-o-y rises of 2.67% in 2019, 7.85% in 2018, and 1.09% in 2017, according to the Urban Redevelopment Authority (URA). Also, Singapore house prices grew 7.1% year-on-year in June 2021. Prime properties at preferred locations are still expected to be the hotspot locations with the high asking prices. The rise of the middle class is creating a desperate need for urban real estate including residential housing.

Along with a number of highly-anticipated projects such as Gem Residences (located in the RCR) and Stars of Kovan (in OCR) lined up for launch, new sales transaction activity is expected to swing towards the mid-tier and mass-market segments. Knight Frank has projected that the demand for luxury homes in the city-state will grow in 2021 as investible properties have moderated to comparatively more affordable price points. as the COVID-19 pandemic situation seems to be under control. There may potentially be about 30 projects comprising 7,940 units for sale in 2021, comparable to 2020's launch volumes.

Growth in the retail sector in Singapore

Store expansions and openings are expected to go ahead as retailers readapt to the new retail environment post-COVID-19. Recovery of the retail market is expected to be long-drawn, given the risks and uncertainties that still linger, though it will be mitigated by the moderate level of upcoming supply.

The widening of the two-tier market is anticipated to continue the hold, although rental corrections and vacancies for the secondary locations and floors in prime locations could present opportunities. Retail logistics has remained a resilient asset class amid the pandemic, with stable rental growth expected in line with the gradual recovery of Singapore's economy. Further, the subdued supply pipeline will continue to lend support to occupancy.

Competitive Landscape

Singapore's real estate market is moderately competitive with prominent domestic players having their presence in this sector and a sizeable number of foreign investors. The housing market has an overall positive sentiment in the market and the investors are eyeing prime locations in the country. Moreover, with the COVID pandemic easing down, the country is expecting more upcoming projects offering the real estate companies lucrative opportunities for investment and construction. With the increasing property prices, Singapore's real estate market is offering a competitive market to developers, buyers, and investors alike.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Product Code: 50193

TABLE OF CONTENTS

1 INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS

  • 4.1 Real Estate Buying Trends - Socioeconomic and Demographic Insights
  • 4.2 Government Initiatives and Regulatory Aspects
  • 4.3 Insights on size of real estate lending and loan to value trends
  • 4.4 Insights on interest rate regime for general economy, and real estate lending
  • 4.5 Insights on rental yields in residential real estate segment
  • 4.6 Insights on affordable housing support provided by government and public-private partnerships
  • 4.7 Insights on real estate tech and startups active in real estate segment (broking, social media, facility management, property management)
  • 4.8 Impact of COVID 19 on real estate market in Singapore

5 MARKET DYNAMICS

  • 5.1 Market Drivers
  • 5.2 Market Restraints
  • 5.3 Market Opportunities
  • 5.4 Porter's Five Forces Analysis
  • 5.5 Industry Value Chain/Supply Chain Analysis

6 MARKET SEGMENTATION

  • 6.1 By Property Type
    • 6.1.1 Residential
    • 6.1.2 Retail
    • 6.1.3 Logistics/Industrial
    • 6.1.4 Hospitality
    • 6.1.5 Office

7 COMPETITIVE LANDSCAPE

  • 7.1 Overview (Market Concentration Analysis and Major Player)
  • 7.2 Company Profiles
    • 7.2.1 UOL Group Limited
    • 7.2.2 CapitaLand
    • 7.2.3 GuocoLand Limited
    • 7.2.4 City Developments Limited
    • 7.2.5 Far East Organization
    • 7.2.6 Genting Singapore
    • 7.2.7 Global Logistics Properties
    • 7.2.8 Ascendas Real Estate Investment Trust
    • 7.2.9 EL Development Pte Limited
    • 7.2.10 Frasers Property

8 FUTURE OF THE MARKET AND ANALYST RECOMMENDATIONS

9 INVESTMENT ANALYSIS OF THE MARKET