Business Monitor International


Singapore Real Estate Report

Published 04 December 2014

  • 83 pages
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  • Includes 3 free updated quarterly reports
 
$1,295.00
Singapore Real Estate Report

BMI View: The Singaporean commercial real estate continues to boast some of the strongest fundamentals in the Asia Pacific region and we expect this to continue in the long   term despite the current slowdown within the real estate sector and the wider economy. The country ' s position as a global financial centre combined with rising income levels and a one of the world ' s busiest ports bolster the overall potential of the sector.

Singapore's reputation as a global financial centre is helping to ensure that the commercial real estate market remains relatively unaffected by the slowdown experienced in the wider economy. Demand remains robust across at the office, retail and industrial segments owing to the country's ability to attract large quantities of foreign direct investment.

The most notable threat to our outlook is external and stems from an accelerated slowdown in China, as many Singaporeans as well as foreign firms hold strong business ties with the country. New government policies now in place to protect the jobs of Singaporean locals have started to show some negative signs in the economy, with fewer jobs being created as well as firms struggling to find suitable employees. This may have a negative impact on Singapore's ability to attract certain investors. Nonetheless, we do not foresee any further threats to Singapore's investor-friendly reputation.

The outlook for the retail segment remains optimistic despite a slight drop in tourist numbers during the second half of 2014. High income levels and growing interest from international retailers help ensure stability in the segment.

The industrial segment will remain stable throughout 2015 and 2016, owing to plentiful supply of space. There is the potential for a slight decrease in rental rates due to oversupply. However, there is growing demand for high-tech space which will lower rental rates for older, traditional units.

For all three sub-sectors we cover we continue to note an emerging trend of...

Table of Contents

BMI Industry View
7
SWOT
9
Political
11
Economic
12
Business Environment
13
Industry Forecast
14
Office
17
Table: Forecast Office Rents, 2014-2015 (USD per square metre per month)
17
Table: Short-Term Forecast Office Yields, 2014-2015 (%)
17
Retail
18
Table: Forecast Retail Rents, 2014-2015 (USD per sq m per month)
18
Table: Short-Term Forecast Retail Yields, 2014-2015 (%)
19
Industrial
20
Table: Forecast Industrial Rents, 2014-2015 (USD per sq m per month)
20
Table: Short-Term Forecast Industrial Net Yields, 2014-2015 (%)
21
Construction And Infrastructure Forecast Scenario
22
Table: Construction And Infrastructure Industry Data (Singapore 2012-2017)
22
Table: Construction And Infrastructure Industry Data (Singapore 2018-2023)
23
Table: Factbox - Key Milestones In Singapore's Infrastructure Masterplan
29
Macroeconomic Forecasts
30
Economic Analysis
30
Labour Restructuring A Notable Headwind
31
Industry Risk Reward Ratings
33
Asia - Risk/Reward Ratings
33
Table: Asia - Real Estate Risk/Reward Ratings
33
Singapore - Risk/Reward Ratings
34
Rewards
34
Risks
34
Market Overview
36
Office
39
Table: Historical Rental Costs, 2013-2014 (USD per square metre per month)
39
Table: Net Yields, 2012-2013 (%)
40
Table: Terms Of Rental Contract/Lease, H213
41
Retail
41
Table: Historical Rental Costs, 2012-2014 (USD per square metre per month)
43
Table: Net Yields, 2012-2014 (%)
43
Table: Terms Of Rental Contract/Lease, H213
44
Industrial
44
Table: Historical Rental Costs, 2012-2014 (USD per square metre month)
46
Table: Historical Net Yields, 2012-2014 (%)
47
Table: Terms Of Rental Contract/Leases, H213
47
Competitive Landscape
48
Office
50
Retail
52
Industrial
52
Other REITs And Real Estate Firms
53
Company Profile
55
CapitaLand
55
City Developments Limited (CDL)
59
Dragages Singapore
62
Keppel Land
64
Singapore Land (SingLand)
67
UOL Group
69
Demographic Forecast
71
Table: Singapore's Population By Age Group, 1990-2020 ('000)
72
Table: Singapore's Population By Age Group, 1990-2020 (% of total)
73
Table: Singapore's Key Population Ratios, 1990-2020
74
Table: Singapore's Rural And Urban Population, 1990-2020
74
Methodology
75
Industry Forecast Methodology
75
Sources
76
Risk/Reward Ratings Methodology
77
Table: Real Estate Risk/Reward Ratings Indicators
78
Table: Weighting Of Indicators
79

The Singapore Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.

BMI's Singapore Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in Singapore.

Key Benefits

  • Benchmark BMI's independent real estate industry forecasts for Singapore to test other views - a key input for successful budgeting and strategic business planning in the Singaporean real estate market.
  • Target business opportunities and risks in Singapore through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI's key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.

Market Overview

Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors.

Market Analysis

Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.

Industry Forecast Scenario

Historical data series (2010-2012) and forecasts to end-2018 for the domestic real estate industry and for the local and global finance industry. Indicators include:

Real Estate: Office, retail and industrial real estate yields for all major cities (%); short-term forecasts on minimum and maximum real estate rental prices by sub-sector (US$ per square metre, and local currency per square metre)

Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%)

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$)

Business Environment Rankings

BMI's Real Estate Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (real estate vendors, construction companies and financial investors) in the regional real estate market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.

Company Profiles

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.

The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc