Office MarketBeat: Despite a slight increase in vacancy rates to 5.5% in Q3 2024 (from 5.4% in Q2 2024), CBD Grade A office rents grew 0.3% qoq. The rise in vacancy rates was due to occupiers' consolidation of office footprint amidst hybrid work. Many occupiers continue to seek premier spaces for purposes of brand positioning, talent acquisition and retention, and ESG compliance. However, they remain cost-conscious and are moving ahead with options that are seen to provide the best bang for buck.
Industrial MarketBeat: Prime logistics continued to grow by 0.7% qoq in Q3 2024, though rental growth is slowing amid higher tenant resistance and higher availabilities in the market due to natural lease expiries. Major new prime logistics projects in 2025, which include 51 Benoi Road and 36 Tuas Road (estimated 50% pre-committed) have seen good take-up rates or are in active negotiations with potential tenants.
Retail MarketBeat: Islandwide retail rents continued to grow by 0.7% qoq to $29.62 psf/mo in Q3 2023, only about 0.2%below the pre-pandemic rate of $29.68 psf/mo, indicating a steady recovery path underpinned by limited new supply and resilient demand. Fuelled by low vacancy rates and robust retailer demand,Suburban prime rents saw the strongest growth at 0.9% qoq, compared to Orchard and Other City Areas which increased by 0.5% and 0.7% qoq respectively.
Capital Markets MarketBeat: Total investment volumes rose 28.6% qoq to $8.1 billion (b) in Q3 2024, led by the residential sector ($3.1b) followed by industrial ($2.5b) and commercial ($2.3b) sectors. In 2024YTD, total investment volumes recorded $ 18.7b, surpassing full year 2023’s volume ($18.4b). The industrial sector witnessed a significant pickup in volume, led by the $1.6b industrial portfolio sale by Blackstone-Soilbuild private Reit. Robust activities were also recorded in the retail market, including ION Orchard (50.0% interest) for $1.8b and Sceneca Square, the retail component of a suburban mixed-use development, for $64m which was acquired by 8M Real Estate.
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