663 views

Property market to see ‘relatively’ strong, yet slower growth

Investment sales are expected to exceed $30b in 2022. 

The Singapore property market is projected to see a “relatively” strong, yet slower growth in 2022, Cushman & Wakefield reported. 

In its Singapore Market Outlook H2 2022, Cushman & Wakefield reported this comes as investors look for safe havens for wealth preservation and diversification. 

Investment sales during the year are expected to exceed $30b, which is a three-year high. In the first half of the year alone total investment sales reached $19.1b. 

READ MORE: Property investment sales to grow by 15% to 20% for whole of 2022

This is largely driven by offices, followed by residential development sites. Industrial deals, however, faced challenges stemming from limited institutional-grade industrial stock for sale and government regulation. 

“Assuming interest rates remain high into 2023, property demand is expected to slow as companies adjust to the impact of these higher rates,” Wong Xian Yang, Head of Research, Singapore at Cushman & Wakefield.

“However, we remain sanguine that the property market in Singapore could see resilience given current tight supply conditions across the board. Property rents and prices for grade A offices and prime logistics are still expected to see inflation-driven growth, and repricing opportunities for these could be limited as asset owners’ holding power remains strong. Rents are largely still expected to grow and support capital values.”

Grade A and Grade B office rents in the Central Business District grew 5.4% and 2.7% year-on-year in 2022, respectively. This could slow in 2023 with occupiers becoming more cautious and as they struggle amidst higher interest rates.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!