January 2023

Property Market Monitor

Office Key Economic Indicators

GDP Real Growth
• Demand slowed in 4Q22 as global economic headwinds intensified and (4Q22, y-o-y, advance 2.2%
weighed on business sentiment. The ongoing consolidation in the tech estimates)
sector also moderated its appetite for office space.
Consumer Price Index
6.7%
• CBD investment grade office rent growth decelerated for the first time since (November 2022, y-o-y)
recovering from the COVID-19 pandemic in 2Q21. Total Trade (current prices)
-2.2%
(November 2022, y-o-y)
• With interest rates climbing further and investors staying on the sidelines
Index of Industrial Production
in 4Q22, CBD investment grade office capital values fell for the first time (November 2022, y-o-y)
-3.2 %
since turning around in 2Q21.
Retail Sales excl. motor vehicles
• Singapore’s office market is expected to cool further over the next 12 (chained-volume terms) 5.9%
months with limited impetus for rent growth foreseen. This could put office (November 2022, y-o-y)
investment assets under greater re-pricing pressure as interest rates are Unemployment Rate (S.A.)
2.1%
expected to stay elevated. (November 2022)
Total Population Annual

11.19
Growth 3.4%
32.2 1.2% 3,237 -1.2% (June 2022)
Current Gross Rental Capital Capital Source: DOS
stock effective rent growth value value growth Major Property Transactions (4Q22)
(sq ft million) (SGD psf pm NLA) (q-o-q) (SGD psf NLA) (q-o-q)
Price
Office
All data is reflective of CBD Investment Grade offices (SGD mil)
Springleaf Tower (strata) 53.9
15 Scotts (strata) 49.0
Residential Southpoint (strata) 43.0
• Sustained increases in home loan interest rates, the recent September Price
Residential
2022 property cooling measures and a weakening economic outlook have (SGD mil)
weighed on buyer sentiment. Coupled with the typical lull that occurs over Hillview Rise (GLS) 320.8
the year-end festive period, prime market activity was more muted in 4Q22. Bukit Timah Link (GLS) 200.0
• Strong leasing demand amid limited stock available for lease drove rents Astrid Hill (GCB) 55.1
up at a faster q-o-q pace for the fourth consecutive quarter. Price
Retail
(SGD mil)
• No successful prime residential collective sale deals were recorded in the
quarter, as the price expectation between developers and sellers remains Portfolio sale of Jurong Point 1 2,161.4
(94.9% interest), Jurong Point 2
mismatched, leading to a stalemate in the private land sales market.
(100.0% interest) & Swing By @
• Prime rents could grow at a slower pace next year as a large influx of new Thomson Plaza (100% interest)
supply is expected, coupled with a weaker economic performance, which 311, 313, 315, 317, 319, 321 42.6
could affect leasing demand and vacancy rates. Price growth could also Geylang Road
slow next year as soaring interest rates and market uncertainty lead to
35, 37 Ann Siang Road 27.2
greater buyer caution.
Price
Industrial
61,242 6.16 6.8% 3,326 2.2% (SGD mil)
Enterprise Logistics Centre 120.6
Current Gross Rental Capital Capital
Prime stock effective rent growth value value growth 10, 12 Mandai Estate 100.0
(units) (SGD psf pm NLA) (q-o-q) (SGD psf NLA) (q-o-q) 12 Tai Seng Link 35.0

The capital value and rental value indicators are reflective of luxury residential properties Source: JLL Research, January 2023
 Retail
• Tourist arrival growth, a recovery in MICE activities and a resilient domestic
consumer market continued to underpin the retail market recovery. Over Authors
the first two months of 4Q22, the retail sales index (excluding motor
vehicles) in chained-volume terms eased on dissipating demand but Tay Huey Ying
remained relatively resilient despite inflationary pressure, growing 8.8% y- Head of Research &
o-y, compared to a growth of 14.2% y-o-y in 3Q22. Consultancy
• Firm retail sales continued to underpin occupier demand in 4Q22. This Singapore
Hueyying.tay@jll.com
supported the fifth consecutive quarter of rent growth for prime floor space
across the three sub-markets in 4Q22.
• Capital values of prime floor space remained flat q-o-q for the second Sara Ong
consecutive quarter across the three sub-markets in 4Q22, due to yield Analyst,
expansion and despite rent growth. Residential Research
Singapore
• Despite macro-economic headwinds, Singapore’s safe-haven status and Sara.ong@jll.com
resilient domestic and tourist consumption should encourage strategic
business expansion, albeit prudently. Rents are expected to extend growth
in 2023 amidst a falling vacancy rate outlook, while a positive retail rent
outlook should underpin retail asset prices. Charmaine Koh
Analyst,
5.1 36.10 0.6% 8,441 0.0% Retail Research
Singapore
Current Gross Rental Capital Capital Charmaine.koh@jll.com
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 Prime sub-market Joey Teo
Analyst,
Industrial Research
Warehouse
Singapore
• Demand for logistics/warehouse space stayed firm in 4Q22, supported by Joey.teo@jll.com
end-users and third-party logistics players (3PLs) with expansion needs.
There were also some enquiries for temperature-controlled premises.
Michelle Tee
• Leasing activity was dominated by renewals given limited space availability Director,
in the market, especially for premises sized 100,000 sq ft and above. Office Research
• The average island-wide logistics/warehouse rent rose for the seventh Singapore
Michelle.tee@jll.com
consecutive quarter, driven by the space crunch and steady demand,
especially for quality premises. This, in turn, underpinned capital value
growth.
• Demand for quality logistics/warehouse space is likely to outstrip supply JLL Singapore
and support rent growth in 2023, albeit at a slower pace, as occupier
88 Market Street
resistance towards further rent hikes is anticipated given the downcast
#35-01 CapitaSpring
macroeconomic outlook. While logistics/warehouse assets are expected to
Singapore 048948
remain a sought-after asset class among investors in 2023, the rising
jll.com.sg
interest rate is expected to moderate the pace of capital value growth.

123.4 1.54 2.7% 218 3.1%

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 island-wide market

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