Despite the global economic slowdown, Singapore real estate is anticipated to stay resilient

It is believed that the Singapore housing market is expected to remain a shining spot worldwide despite growing macroeconomic headwinds as per Savills Research. As increasing inflation and fears of recession have cast shadows over the real estate market globally however, the city-state is set to remain strong.

TMW Maxwell developer deal will see a transfer of $276.8 million to the owners of TMW Maxwell.

“In general the Singapore real estate market is in a great position to avoid the negative effects of global economic turmoil and political tensions across the globe,” says Alan Cheong the head of Savills Singapore Research and Consultancy.

Cheong says his opinion that Singapore market is buoyed by the shortage of inventory in many areas, while developers on the market for residential properties have an impressive financial holding capacity. In this way, the market has the capacity to “overcome the negative effects of rising interest rates and recessions in the economy”.

Singapore has seen $9.1 billion worth of real estate investment deals in the initial three quarters in 2022. This was an increase of 47% from the same time in 2021, as per MSCI Real Assets figures. Savills further reveals that the residential rental market has seen a strong growth as rents for private residential properties rising 8.6% q-o-q in 3Q2022 this was the biggest quarterly growth over the past 15 years.

Other sectors also have positive indicators, such as the office industry, which is seeing rising rental rates for CBD offices despite a decrease in vacant spaces as well as the rental rates of logistic properties are expected to rise in 2023.

The International Monetary Fund is projecting Singapore to track GDP (GDP) expansion by 2.3% in 2023, exceeding the 1% as well as 0.5% GDP growth rates projected in both the US and EU respectively.