More deals expected in Singapore real estate in 2024: report

Singapore remains to have a more unique selling point as a haven.

Savills' recent research found that Singapore property sectors will have a mixed outlook but more transactions are seen in line in 2024.

In a report, Savills said industrialists will be more cautious in their expansion. Still, industrial rents are expected to experience health growth with up to 3% rise year-on-year in warehouse and logistics.

For the retail segment, Singapore will post a 3% to 5% rental increase YOY for "Prime Orchard Road but the Prime Suburban malls will remain flat with more consumers returning to the office and doing more travelling, and therefore have a lower consumption spend in the residential heartlands."

The office sector's "new supply and the increasing economic malaise that is affecting most countries will cause rental to soften by 2% - 3%." 

"However, landlords will still have strong holding power and their expectation of interest rates rising again will reduce the probability of rents being slashed further,"read the statement.

In the residential segment, rents will likely experience a negative bias of up to 5% next year due to an abundant supply expected in the rest of 2023 and 2024. 

"On the capital value front, the drop of buying volume from foreigners (due to the ADSB hike in April this year) may have impacted the CCR (Core Central Region) properties more but overall, prices island-wide would likely remain flattish for 2024," read the report.

Singapore, meanwhile, continues to offer unique properties, making it a base level of transactions stemming from ultra-high net worth families, seeking to diversify from riskier assets and countries.

"The relatively low base of 2023, and that the trajectory of interest rates is now seen to be peaking, give rise to optimism for more deals through the line in 2024," read the report.