US rate cuts to boost Singapore’s office, logistics, and retail sectors

Lower borrowing costs may boost transactions as buyers and sellers regain confidence.

Recent US rate cuts are expected to positively influence Singapore's office, logistics, and retail sectors, Colliers said.

In a report, Colliers said lower borrowing costs are likely to drive increased transaction volumes as both buyers and sellers re-enter the market with renewed confidence.

It noted Singapore's capital values remain stable, underpinned by strong holding power and robust fundamentals, particularly in prime logistics and retail assets.

Office assets, especially high-quality and ESG-compliant properties, are attracting growing investor interest due to their potential for higher occupancy rates and increased value.

The logistics sector sees rising demand for automated and specialized assets like data centers, whilst the retail sector is poised for growth driven by improved consumer sentiment and rate cuts.

ESG integration is a key investor focus, with Singapore’s sustainability emphasis enhancing its appeal for ESG-compliant investments offering value premiums and higher occupancy rates.