Rising numbers of single family offices to bolsters demand for strata offices

Sales volume of shophouses jumped in Q4 2020.

The increasing popularity of Singapore as a wealth management hub for family offices will bolster the demand for real estate investments particularly strata offices and shophouses according to real estate service provider Colliers.

According to Colliers report, Singapore's conducive business environment and government incentives, its availability of talent pool and professional services and its quality of lifestyle have led Singapore to increasingly become the jurisdiction of choice for single-family offices.

Sales volume of shophouses were down 46.1% YoY in Q2 2020, but Q4 2020 investments jumped 51.1% YoY reflecting rising demand for repurposing prime shophouses for new work, live, play trends, such as co-living and co-working.

Meanwhile, transaction volumes in strata offices fell in 2020 due to uncertainties in the market. However, Colliers predicts the office market to recover by the end of 2021 with recovery driven by tech occupiers and shrinking new office stock whilst longer-term drivers such as CBD Incentive Schemes and Greater Southern Waterfront should support the CBD office market outlook.

“We believe family offices are set to grow further with the rising affluence in Asia. This phenomenon bodes well for real estate investments with smaller quantum, such as shophouses and strata offices," head of research at Collier Tricia Song said.
 

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

SIT, DNV ink 3-year partnership on maritime decarbonization and digitalization
The parties will cooperate in three key areas.   The Singapore Institute of Technology (SIT) has joined hands with a maritime advisor, DNV, to advance net-zero ambitions in the Lion City’s maritime sector.

Exclusives

Where to invest your millions in real estate
Amongst locations, realtors suggest the Core Central Region.   Individuals seeking shelter in the real estate market amidst the rising inflation must consider three things before deciding where to invest their millions in.   George Tan, managing director of Savills Digital Residential Marketing, said one of these factors is location.    Tan said buyers should consider areas which are highly demanded and well located—easy access to prestigious or international schools, MRT, malls and food and beverage (F&B) establishments. All these will contribute to good rental demand.   PropNex realtor, Andy Lim, echoed this, adding that buyers should particularly invest in properties within one kilometre of the prestigious schools.