October 2022

Property Market Monitor

Office Key Economic Indicators

GDP Real Growth
• Supported by the tailwind of economy re-opening, leasing (3Q22, y-o-y, advance 4.4%
activities remained healthy in 3Q22 despite growing concerns over a global estimates)
economic slowdown. Consumer Price Index
7.5%
• CBD investment-grade office rents continued to climb for the sixth (August 2022, y-o-y)
consecutive quarter amid tightening vacancy rates, and are now at their Total Trade (current prices)
26.0%
highest level since 4Q08. (August 2022, y-o-y)
Index of Industrial Production
• Capital value growth of CBD investment-grade offices decelerated to a near (August 2022, y-o-y)
0.5%
halt in 3Q22 as investors turned selective and cautious amid economic
Retail Sales excl. motor vehicles
headwinds and soaring interest rates. (chained-volume terms) 13.0%
• The downcast economic outlook is expected to cool the office market over (August 2022, y-o-y)
the next 12 months. Nonetheless, investors still view Singapore as a safe Unemployment Rate (S.A.)
1.9%
haven and remain keen on premium commercial acquisition opportunities (August 2022)
on the back of the long-term value proposition of Singapore's office assets. Total Population Annual
Growth 3.4%
(June 2022)
32.2 11.06 2.9% 3,277 0.2% Source: DOS
Current Gross Rental Capital Capital Major Property Transactions | 3Q22
stock effective rent growth value value growth
Price
(sq ft million) (SGD psf pm NLA) (q-o-q) (SGD psf NLA) (q-o-q) Office
(SGD mil)
All data is reflective of CBD Investment Grade offices Income at Raffles
1,000
(100% interest in holding entity)
Samsung Hub
53.1
Residential (strata)

• Lower buyer demand caused by the rapid increase in interest rates for Suntec City Tower Two
41.2
(strata)
housing loans and limited fresh project launches in the quarter, coupled
with the typical lull that occurs over the Hungry Ghost month, resulted in Price
Residential
(SGD mil)
subdued market activity in the Prime districts.
Chuan Park (collective sale) 890.0
• Limited stock available for rent amid growing demand for leasing drove
Lentor Central (GLS) 481.0
rents upward at an accelerated pace for the third straight quarter.
Park View Mansions 260.0
• The residential collective-sales market in the Prime districts remains (collective sale)
muted as the mismatch in price expectations between developers and Price
sellers continue to affect the success rate of collective-sales deals. Higher Retail
(SGD mil)
development costs and the weakening global economic outlook have led Waterway Point 131.3
developers to become even more cautious in their land bids. (effective 10% interest)
• Rents could continue to grow at a healthy pace in 4Q22 due to limited new 42-45 Mosque Street, 54 & 56 110
completions, but growth could moderate in 2023 as the larger expected Pagoda Street, 42 Craig Road (approx.)
supply and weakened economic outlook affect vacancy rates. Price growth 161 Lavender Street 71.3
could slow in the next 12 months as economic uncertainties, rising interest Price
rates and recent cooling measures take some heat off the market. Industrial
(SGD mil)
1 Buroh Lane
60,735 5.77 5.7% 3,254 1.1% 191.9
(100% interest in holding entity)
Current Gross Rental Capital Capital Philips APAC Center 104.8
Prime stock effective rent growth value value growth
Pandan Logistics Hub 43.5
(units) (SGD psf pm NLA) (q-o-q) (SGD psf NLA) (q-o-q)
Source: JLL Research, October 2022
The capital value and rental value indicators are reflective of luxury residential properties
 Retail
•
domestic consumption and tourism spending as visitor arrivals grew. Over
the first two months of 3Q22, the retail sales index (excluding motor
vehicles) in chained-volume terms eased off on dissipating pent-up Authors
demand but remained relatively resilient despite inflationary pressure,
growing 13.8% y-o-y, compared to a growth of 16.5% y-o-y in 2Q22. Tay Huey Ying
• Improved retailer optimism continued to spur business expansion in 3Q22, Head of Research &
driving vacancy rates lower. This supported the fourth consecutive quarter Consultancy
of rent recovery for prime floor space across the three submarkets in 3Q22. Singapore
Hueyying.tay@ap.jll.com
• Capital values of prime floor space remained flat q-o-q across the three
submarkets in 3Q22, due to yield expansion and despite rent growth.
• Singapore's commitment to reopening the economy should continue to Sara Ong
drive consumption and keep business confidence positive. This, in turn, is Analyst,
expected to encourage strategic business expansion, albeit cautiously, Residential Research
considering economic headwinds. Rents are expected to stay on the Singapore
Sara.ong@ap.jll.com
growth path in 4Q22 and 2023 amidst a falling vacancy rate outlook, while
a positive retail rent outlook should underpin retail asset prices.

5.1 35.90 0.9% 8,441 0.0% Angelia Phua

Current Gross Rental Capital Capital Consulting Director,
stock effective rent growth value value growth Retail Research
(sq ft million) (SGD psf pm NLA) (q-o-q) (SGD psf NLA) (q-o-q) Singapore
Angelia.phua@ap.jll.com
All data is reflective of the Prime sub-market

Warehouse Doreen Goh

Director,
• Demand for logistics/warehouse space was driven mainly by third-party Industrial Research
logistics players with expansion needs. While there were also enquiries for Singapore
temperature-controlled premises, new requirements from e-commerce Doreen.goh@ap.jll.com
firms slowed down. In addition, the stiff competition for space (especially
for larger premises of 100,000 sq ft or more) is also prompting more
occupiers to consider renewing their existing leases. Michelle Tee
Director,
• Healthy demand amid tight supply, especially for quality space, drove the Office Research
average islandwide logistics/warehouse rent up for the sixth consecutive
Singapore
quarter in 3Q22. This brought rents back to the previous peak in 4Q13. Michelle.tee@ap.jll.com
• The foreseen tight availability of quality logistics/warehouse space is
expected to extend into 2023 and underpin further rent and capital value
growth. However, amid a more challenging macroeconomic environment
in 2023, the rent increase could be headed for moderation in anticipation JLL Singapore
of occupier resistance. Soaring interest rates could also slow the strength 88 Market Street
of capital value growth in 2023. #35-01 CapitaSpring
Singapore 048948
122.8 1.50 2.7% 212 3.2% jll.com.sg
Current Gross Rental Capital Capital
stock effective rent growth value value growth
(sq ft million) (SGD psf pm NLA) (q-o-q) (SGD psf NLA) (q-o-q)
All data is reflective of the islandwide market Bandits

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