Volumes recede along with sentiment

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 Sep 2021 to Sep 2022:
a. Average PSF fell 13.6% YoY ($1,813 PSF to $1,566 PSF);
b. Volumes fell 74.1% YoY (54 transactions to 14 transactions).

Between Aug 2022 to Sep 2022:
a. Average PSF grew 7.9% MoM ($1,451 PSF to $1,566 PSF);
b. Volumes fell 57.6% MoM (33 transactions to 14 transactions).

In Sep 2022, the 3 projects with the most resale transactions were Everitt Edge (2), 9 @ Tagore (2) and Eastgate (1). Details of all 12 transacted projects by volume are included in the PDF below.

2) Rental Market
Between Sep 2021 to Sep 2022:
a. Average PSF grew 20.0% YoY ($4.80 PSF to $5.76 PSF);
b. Volumes fell 41.3% YoY (179 transactions to 105 transactions).

Between Aug 2022 to Sep 2022:
a. Average PSF grew 23.9% MoM ($4.65 PSF to $5.76 PSF);
b. Volumes fell 31.9% MoM (154 transactions to 105 transactions).

In Sep 2022, the 3 projects with the most rental transactions were AZ @ Paya Lebar (6), Far East Plaza (4), and Oxley Tower (4). Details of all 77 transacted projects by volume are included in the PDF below.

Skystone Research