Following a decade-low GDP performance in 2019, the Ministry of Trade and Industry reduced its GDP forecast further for Singapore in 2020. In this report, CBRE Research explores the growth potential of Singapore real estate, as well as global headwinds and their impact on each sector.
•Capital Markets: Ample capital will support asset prices, although sizeable and quality assets are limited.
•Office: Rental resilience expected as prospects of the market look stable. While demand seems broad-based, it is back to basics with smaller space requirements.
•Retail: Widening of two-tier market to persist while prime retail space is expected to display more resilience, secondary floors/ corridors will face more pressure.
•Residential: Underlying demand to persist although it will be a challenging first half of the year.
•Logistics: Suppressed rental market amid global uncertainties and disrupted regional supply chains, though impact to be cushioned by limited supply pipeline.