Singapore’s real estate market displayed a mixed performance in the fourth quarter (Q4) of 2024, according to the latest report by Edmund Tie & Company (ETC). Total investment sales reached S$6.5 billion, marking a 20.3% decline from the previous quarter, yet reflecting a robust 28.7% year-on-year (YoY) increase to S$25.2 billion for the entire year.
The office sector saw an increase in overall occupancy to 95.0%, driven by demand in the Central Business District (CBD), with net absorption reaching 39,000 square metres. However, shadow space rose by 16.2% quarter-on-quarter, indicating potential downsizing or relocation by tenants. Looking forward, new developments like Paya Lebar Green are expected to boost leasing activity in 2025.
In the industrial sector, the property index grew by 3.5% YoY, with warehouse occupancy rising to 91.5%. Despite this, Business Park occupancy declined to 77.9%. The market anticipates a rise in completions for warehouse and Business Park spaces in 2025, although multi-user factory supply is expected to remain low.
The retail sector remains a stronghold for global brands, bolstered by tourism recovery and high occupancy rates. Key sectors such as athleisure and food and beverage are expected to continue driving demand.
Residential transactions increased to 21,950 units in 2024, with non-landed prices rising 4.7% YoY. Whilst rental rates fell 1.9% year-on-year, transaction volumes indicate market stabilisation. Positive buyer sentiment is expected to persist into 2025, with moderate growth in property price indices.
Overall, while interest rate cuts have improved investor sentiment, economic and geopolitical uncertainties continue to influence cautious investment strategies. The market’s outlook for 2025 suggests selective investment focus on sectors with strong growth potential.
This news story was carefully selected and published by a human editor, though the content itself was AI-generated. If you spot an error, please report it here.
