Chart of the Day: Here’s proof that occupancy rates are dipping beyond the 90% mark

It’s headed to the lowest occupancy since the 90s.

The small improvement in occupancy rates this quarter is not a reason to cheer for the residential market, as analysts say occupancy rates might dip below the 90% mark by the end of the year.

According to analysts from Orangetee Research, the uptick in occupancy from 91.9% in 4Q15 to 92.5% in 1Q16 can be attributed to a smaller number of completions in 1Q16, as only 2,855 private residential units were completed in 1Q16 as compared to 5,299 private residential units in 4Q15.

However, Orangetee said another 20,516 private residential units are expected to be completed in 2016.

“So going forward, we may actually see occupancy rates dip below the 90% mark by the end of the year and should it materialise, it’ll be the lowest occupancy rate since 3Q98 (90.3%),” Orangetee Research said.

Meanwhile, volumes fell due to the stock market turbulence this January, even with strong sales from Cairnhill Nine and the Wisteria.

“The two newly launched projects brought in a combined sale volume of 293 units, representing 20.6% of the total primary sales for 1Q16. Decline in volume could be due to turbulence in the stock market at the beginning of the year,” Orangetee Research said.

“It is customary for uncertainties arising from turbulence in the stock market to instigate a mood of caution and buyers generally stayed away from the market,” Orangetee Research added.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia