Singapore's commercial property market remains steady: report

Meanwhile, investment enquiries across Singapore fell in Q4.

Singapore's commercial property market remains healthy, according to a Royal Institution of Chartered Surveyors (RICS) Commercial Property Monitor Q1 2024 report.

The Commercial Property Sentiment Index showed a net balance of -16,  the lowest reading for the indicator since Q1 of 2024 (-2).

Availability of commercial property in Singapore remained healthy with a reading of +31 of respondents noting a large number of properties currently on the market.

However, demand for these properties dipped in the last quarter, with a -14 record down from +6 in Q3 of 2024. 

This imbalance could put a strain on supply and demand moving forward, the report noted.

The survey indicator which looks at how many new developments start recorded a net balance of +0, an improvement on the -24 recorded in Q3 2024 whilst credit conditions in the region remained healthy (+33).

Meanwhile, investment enquiries across Singapore fell in Q4 with a reading of -27, down from +30—the most negative this indicator since Q2 of 2021 (-28).

Looking across rent expectations for the sector at three and twelve-month timescales, net balance readings of -6 and +22 respectively were recorded this time round (from the -6 and +21 recorded in Q3 2024

Moreover, data centres (4.3%), aged care facilities (3.3%), student housing (2.5%), and hotels (2.5%) were the most promising commercial properties in terms of capital value projections over the next twelve months.