Driven by residential collective sales, preliminary investment tally rose to a new quarterly high of $11.084 bn. This points to a lift in developers’ sentiment, especially amongst local players.
The office market ended the year on a high note. Stronger leasing activity was observed in Q4 2017 as both existing and some pipeline projects enjoyed notable increases in commitment levels.
It was a relatively subdued quarter as occupier activity continued to be more concentrated on the office sector. Vacancy dipped slightly from 12.1% to 11.8% in Q4 2017.
While the retail sector looks poised to recover, we have yet to see any significant uptick in rents. In 2018, the retail market could surprise on the upside if the growth momentum sustains.
Developers sold 1,543 new homes this quarter (up till Nov), with buyers picking up more units from projects that have been launched before. URA’s initial estimates showed that the price index will recover by 0.7% q-o-q and 1.0% y-o-y.
Leasing volume in factories and warehouses showed improvement in 2017 YTD. Some tenants leveraged on current competitive rental levels to relocate from older to newer developments.