Property prospects mixed amidst rising supply

The office market will see a higher supply with a pipeline of 4.76 million square feet.

Overall property demand in Singapore will likely improve in 2024, although higher supply in markets like residential and office may “crimp rental prospects,” said Cushman & Wakefield.

The pipeline supply for the office market is 4.7 million square feet, whilst the residential market will see the addition of 12,520 units.

Commenting on the office market, C&W said rents for CBD Grade A offices will remain on an uptrend.

Deals in the market, however, remain challenging to transact due to negative cash on cash returns, which is likely to persist, said C&W.

In the residential space, C&W sees long-term capital gains “as the price gap between suburban and luxury condos has been shrinking in recent years.”