Office Property Q3 2021
Overview
In Q3 2021, Singapore’s economy continued to
recover amid improving global and trade outlook
which has restored business confidence and job
market prospects. According to advance GDP
estimates, the Singapore economy grew by 6.5%
YOY and 0.8% QOQ in Q3 2021 – with growth across
most sectors. The economy is projected to grow
by 6% to 7% this year.
The office property market stalled in Q3 2021 in
light of the re-tightening of safe management
restrictions in July to August and subsequently in
end-September that led to most workplaces
returning to telecommuting as the default mode.
While office sales and rentals have eased from the
first half of the year’s stellar performance, market
observations suggest that demand for office
space remains resilient with a number of investors
entering the market for ‘opportunistic’ buying of
prime office assets before the market recovers
further.
Singapore’s commitment towards the reopening
of its economy continues to provide more
certainty to stakeholders – that includes
reopening borders to a number of countries which
will allow more foreign working expatriates,
investors and companies to enter Singapore. The
impacts of which will boost the office market’s
investment and occupier demand.

Market Outlook
The recent rise in COVID-19 community cases and
emergence of large clusters have resulted in
Singapore entering into the “stabilization phase”
which has been extended to last until 21
November. The restrictions will likely rein in office
rentals, as telecommuting remains the default
working mode.
The opening of Vaccinated Travel Lanes (VTL)
starting from 13 October will likely help to push up
demand for office space with more foreign
expatriates and investors gaining ease in entering
Singapore. Though, the net impact on the office
property market may not be significant as a
number of local investors may venture to other
markets while working expatriates may return to
their home countries during the festive season for
the holidays.
Office leasing activities are expected to be muted
during the coming few months as most occupiers
are likely to stay put while key decision makers are
away and not likely to sign new leases during the
festive season. This is more likely with the opening
of VTLs, where a number of travel-starved
Singaporeans look to going abroad for the
holidays.
Looking ahead, office prices and rentals are
expected to bottom at the end of 2021 and is
projected to show some positive upside in 2022 in
light of limited Grade A new office supply over the
near term along with the positive economic outlook.

Shophouse Property Report Q3 2021
Overview
Amidst the record rise in COVID-19 community
cases during the past quarter and tightening of
safe management restrictions from 22 July to 18
August and in the later part of September, the
shophouse property market moderated slightly
in Q3 2021 – after the previous quarters’ strong
recovery. In terms of volume and value of sales
transactions, the shophouse market has
outperformed that for 2020 and 2019, for the first
nine months of 2021, and is on track to surpass
that of 2018.

Market Outlook
Singapore reintroduced a new round of
restrictions starting from 22 September, with
stricter measures (including restrictions on
dining-in, and work from home as a default) that
will likely impact shophouse tenants in service
sectors. The impact is likely to be temporary as
Singapore continues to ease its restrictions.
Leasing demand for the remainder of 2021 and
early part of 2022 will remain steadfast as
occupiers gain confidence from the easing of
safe management restrictions and high
vaccination rates in the community.
For the coming quarter and first part of 2022,
PropNex expects sales momentum in the
shophouse market to increase gradually in lieu
of the progressive opening of travel borders
starting from October 13th. With border
restrictions being lifted, foreign investors and
overseas funds in search of defensive and
value-adding assets will drive up demand and
prop up asking prices for shophouses in the
medium term. However, sales volume is not
expected to increase drastically due to the
limited supply of shophouses available for sale
in the market.

Office Property Q3 2021
Overview
In Q3 2021, Singapore’s economy continued to
recover amid improving global and trade outlook
which has restored business confidence and job
market prospects. According to advance GDP
estimates, the Singapore economy grew by 6.5%
YOY and 0.8% QOQ in Q3 2021 – with growth across
most sectors. The economy is projected to grow
by 6% to 7% this year.
The office property market stalled in Q3 2021 in
light of the re-tightening of safe management
restrictions in July to August and subsequently in
end-September that led to most workplaces
returning to telecommuting as the default mode.
While office sales and rentals have eased from the
first half of the year’s stellar performance, market
observations suggest that demand for office
space remains resilient with a number of investors
entering the market for ‘opportunistic’ buying of
prime office assets before the market recovers
further.
Singapore’s commitment towards the reopening
of its economy continues to provide more
certainty to stakeholders – that includes
reopening borders to a number of countries which
will allow more foreign working expatriates,
investors and companies to enter Singapore. The
impacts of which will boost the office market’s
investment and occupier demand.

Market Outlook
The recent rise in COVID-19 community cases and
emergence of large clusters have resulted in
Singapore entering into the “stabilization phase”
which has been extended to last until 21
November. The restrictions will likely rein in office
rentals, as telecommuting remains the default
working mode.
The opening of Vaccinated Travel Lanes (VTL)
starting from 13 October will likely help to push up
demand for office space with more foreign
expatriates and investors gaining ease in entering
Singapore. Though, the net impact on the office
property market may not be significant as a
number of local investors may venture to other
markets while working expatriates may return to
their home countries during the festive season for
the holidays.
Office leasing activities are expected to be muted
during the coming few months as most occupiers
are likely to stay put while key decision makers are
away and not likely to sign new leases during the
festive season. This is more likely with the opening
of VTLs, where a number of travel-starved
Singaporeans look to going abroad for the
holidays.
Looking ahead, office prices and rentals are
expected to bottom at the end of 2021 and is
projected to show some positive upside in 2022 in
light of limited Grade A new office supply over the
near term along with the positive economic outlook.