Singapore cap rates remain steady in 4Q23

The gross yield of commercial properties in Singapore ranges from 3.00%-6.25%.

Singapore cap rates remained steady in 4Q23, thanks to the country’s macroeconomic stability and the strong holding power of asset owners.

Data from Collier’s APAC Cap Rates Report showed that as of 4Q23, interest rate and inflation rates in Singapore were at 3.74% and 3.30%, respectively.

According to the report, the gross yield of office properties can go as high as 3.50% and as low as 3.00%.

For retail properties, the lowest gross yield would be 4.25% and the highest would be 4.75%.

 For industrial, the lowest gross yield would be 5.25%, whilst the highest would be 6.25%.

Colliers expects the cap rate to remain stable in the near term but forecasts a decline should interest rates drop in the second half of 2024.