Prices + Volumes Fall

Hi, this week we examine Singapore-wide Freehold Commercial & Industrial: 1) Resale and 2) Rental. While many of us don’t invest in this segment per se, reading it as an approximate index to the wider market is helpful in observing various liquidity flows in Singapore’s real estate landscape. For those who are curious, commercial and industrial property do not attract ABSD/SSD.

1) Resale Market

Between July 2021 to July 2022:
a. Average PSF fell 8.3% YoY ($2,199 PSF to $2,015 PSF);
b. Volumes fell 12.2% YoY (82 transactions to 72 transactions).

Between June 2022 to July 2022:
a. Average PSF fell 15.7% MoM ($2,390 PSF to $2,015 PSF);
b. Volumes fell 21.7% MoM (92 transactions to 72 transactions).

In July 2022, the 3 projects with the most resale transactions were Biztech Centre (5), Queensway Shopping Centre (4) and Little India Conservation Area (3). Details of all 48 transacted projects by volume are included in the PDF below.

2) Rental Market

Between July 2021 to July 2022:
a. Average PSF grew 23.7% YoY ($3.87 PSF to $4.79 PSF);
b. Volumes fell 20.1% YoY (159 transactions to 127 transactions).

Between June 2022 to July 2022:
a. Average PSF down 25.4% MoM ($6.42 PSF to $4.79 PSF);
b. Volumes fell 3.8% MoM (132 transactions to 127 transactions).

In July 2022, the 3 projects with the most rental transactions were Delta House (5), Oxley Tower (4) Centropod@ Changi (3). Details of all 94 transacted projects by volume are included in the PDF below.

Skystone Research