Singapore’s office market has been ranked among the top five in the “HOT” category in the Asia Pacific, according to a Money into Property report released by DTZ.
In an article published by Singapore Business Review, DTZ said the forecast for the commercial and industrial market in Singapore was based on a projected economic growth of between four and six percent.
“Singapore's commercial and industrial markets remain in the HOT category, similar to the Q4 2010 findings, as we expect continued price and rental increases based on the projected economic growth of 4-6 percent in 2011 and over the next few years,” said Chua Chor Hoon, Head of South East Asia Research at DTZ.
Capital values are expected to re-price at a faster pace compared to last year, with growing interest from institutional investors.
“Some of the core developed markets in Asia Pacific have re-priced over the past 12 months resulting in a reduction in the number of HOT markets,” said David Green-Morgan, Head of Asia Pacific Research.
“However, numerous attractive investment opportunities still exist across the region and in all sectors. Developing markets dominate the WARM and HOT categories. However, there are still attractive opportunities in developed markets such as Melbourne and Singapore offices.”
He noted that these opportunities will be fuelled by strong take-up in the office market, which will also encourage continued rental growth.
DTZ expects momentum in Asia Pacific to continue on the back of strong investor interest, robust economic growth and the lack of legacy debt issues.
Source: Commercial Guru
