Singapore’s economic growth is forecasted at 3.4% in 2024, supported by rising incomes, a strong labor market, and export recovery. Inflation and interest rates are expected to ease, boosting retail sales and tourism recovery. Retail sales could grow 8.5% y-o-y by 2025, with visitor arrivals nearing pre-pandemic levels.
Singapore Market Highlights:
- Economic Growth: Steady economic growth of 2.8% in 2025, supported by a tight labour market, higher export growth and tourism recovery.
- Office Market: CBD Grade A vacancy rates to fall, with a fall in new supply is met with rising office demand.
- Industrial: Steady rent growth for most industrial segments, though above-trend rent growth for prime logistics in recent years is expected to ease.
- Capital Markets: Increased investment activity, particularly in commercial and industrial segments, as interest rates decline.
- Private Residential: Rising market sentiments on the back of a surge in volumes at the end of 2024.
- Hotel Sector: Average Room Rates to stabilize, while Revenue per Available Room to grow through higher occupancy rates.
- Retail: Robust retailer demand for suburban retail space with new suburban malls seeing high occupancy rates.
