Office Property Q1 2021
Overview
The office property sector has continued to
stabilise in Q1 2021, amid Singapore’s economic
recovery and the more positive outlook – with
GDP projected to grow by 4% to 6% this year –
helping to lift business confidence and job
market prospects. In particular, the technology
sector remains a key growth driver in the office
property space.
Offices will continue to play a core role in
facilitating collaboration and driving productivity.
As work-from-home (WFH) arrangements taper
and more workers start to return to the
workplace, occupiers will have to ensure that
safe management measures continue to be
implemented effectively. To this end, hybrid
working – where workers could telecommute for
a couple of days per work week – may also
become more established, particularly for job
functions that are suited to remote working.
Meanwhile, Singapore’s effective management
of the pandemic and systematic rollout of its
vaccination programme have further solidified
its reputation as a safe and stable investment
destination, attracting large corporates to
establish or expand their presence in the Republic.

Industrial Property Q1 2021
Overview
The industrial property segment continued to
recover in Q1 2021 amid the rosier outlook for
the Singapore economy as well as the
improvement in the manufacturing sentiment.
Singapore’s GDP is expected to grow by 4% to
6% in 2021.

Based on advance estimates, Singapore’s
economy grew by 0.2% (YOY) in Q1 2021 –
marking the first quarterly expansion since the
COVID-19 outbreak in 2020. In particular, the
manufacturing sector in Singapore performed
strongly – rising by 7.5% (YOY) – supported
by the electronics, precision engineering,
chemicals and biomedical segments.
While the economic recovery may spur
demand for industrial space, JTC noted that
any potential rise in occupancy is likely to be
tempered by new completions and the
increase in supply into the market. To this end,
prices and rentals are expected to remain
stable.

Shophouse Property Report Q1 2021
Overview
The shophouse property market remained
vibrant in Q1 2021, following a strong recovery
towards the end of 2020. Sales have largely
returned to pre-pandemic levels amid the
brighter outlook ahead.
Prime shophouses were sought after by investors
– including high net worth individuals and
property funds – seeking stable rental income as
well as preservation of capital value. Their
heritage value and scarcity have helped to
sustain prices, while the ample liquidity in the
system and low interest rates supported
demand for this asset class.

Market Sentiment and Outlook
Overall, the gradual improvement in the economy
and more optimistic business sentiment should
help to support demand of industrial space. The
recovery in global demand and growth in
Singapore’s export could also help to lift
manufacturing momentum – which could
encourage industrialists and manufacturers to
expand their business to meet industrial
production.
However, the upcoming spike in supply will likely
keep rentals in check, lending to a relatively
stable rent outlook. Apart from the 2.4 million
sqm of space slated to be ready in 2021, JTC said
that an additional 2.8 million sqm of industrial
space is also expected to be completed between
2022 and 2024.
Moving ahead, the key sectors that will continue
to support the industrial property demand
include technology, electronics, biomedical,
precision engineering, as well as the logistics
sectors.