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Follow on Google News | Market Report, "Singapore Real Estate Report Q3 2011", publishedNew Business market report from Business Monitor International: "Singapore Real Estate Report Q3 2011"
Virtually all key drivers of long-term growth in Singapore's commercial real estate sector remain intact. A relatively small group of large-scale - and listed - local developers continue to participate in a virtuous circle, in which commercial development both boosts and benefits from the state-guided evolution of Singapore as the premiere regional business centre. In part because of links to government-directed funds (through strategic holding company Temasek or the Government of Singapore Investment Corporation (GIC -the agency that invests the country's foreign reserves), and in part thanks to the general political and financial stability of the city-state, major players such as CapitaLand and City Developments have long had access to relatively low cost capital: this remains the case. The short-to-medium outlook remains positive. Residential prices have risen to record highs, thanks in part to substantial buying by foreigners, who accounted for around one third of all purchases of houses and apartments in Q111. However, the momentum of price rises is slowing; so too is the number of sales of houses and units, which fell in Q111 to the lowest level since Q409. The major developers continue to book profits from past developments and to replenish their landbanks. In the office sector, the total amount of space has risen over the last year, as has the occupancy rate. The improvement in an already strong economy has vindicated the optimism of the commercial real estate agents we interviewed in Singapore in late 2010. Indeed, the preliminary official statistics have caused BMI to revise its GDP growth forecast for 2011 to 5.9%. The general comments of the major developers reassure us that momentum has also been positive in the commercial and industrial segments. ------------------------------------------------------------ Full Report Details at - http://www.fastmr.com/ ------------------------------------------------------------ Key Risks All this begs the question: what could go wrong? We see only two challenges in the next year or so. One is that Singapore's commercial real estate market becomes a victim of its own success, with the result that rents rise to levels where the city-state is no longer competitive as a regional corporate sector. Already, particular surveys of global office markets indicate that, in terms of rent per square metre, Singapore's A grade property is among the most expensive in the world. We note, though, that the other attractions and strengths of Singapore as a regional business centre are such that it would probably still flourish even if office rents became the most expensive in the world. Related to this, it is possible that inflows of 'hot' money from China and Malaysia (especially) The other, far more important challenge would be a sharp slow-down (or worse) in China, which would have the effect of causing regional trade to contract sharply. Singapore's economy - and, therefore, its commercial real estate sector - is leveraged to trade within and through South East Asia. Economic or financial problems in Malaysia and/or Indonesia would also present challenges - although we do not see these as being likely. Partial Table of Contents: Executive Summary - Key Trends - Key Risks SWOT Analysis - Singapore Real Estate/Construction SWOT - Singapore Economic SWOT - Singapore Business Environment SWOT Real Estate Market Overview - Real Estate Market Analysis - Table: Singapore's Real Estate Market - Historic Rents, 2009 And 2010 (m2/month, US$) - Table: Singapore's Real Estate Market - Net Yields, 2010 And 2011 (%) - Table: Singapore's Real Estate Market - Terms Of Rental Contract/Lease, Mid-2010 - Table: Singapore's Real Estate Market - Available And Vacant Space, Mid-2010 (m2) Industry Forecast Scenario - Real Estate Outlook - Table: Singapore's Real Estate Market - Rents, 2010-2012 (m2/month, US$) - Table: Singapore's Real Estate Market - Forecast Yield, 2008-2015 (%) - Construction And Infrastructure Forecast Scenario - Table: Singapore Construction And Infrastructure Industry Data - Table: Singapore Construction And Infrastructure Industry Data - Singapore's Macroeconomic Outlook - Singapore - Economic Activity Business Environment - Real Estate/Construction Business Environment Ratings - Table: Asia Real Estate/Construction Business Environment Ratings - Project Finance Ratings: Outlook For Asia Pacific - Table: Design And Construction Rating - Table: Commissioning And Operating Rating - Table: Overall Project Finance Rating - Singapore's Business Environment - Table: BMI Business And Operation Risk Ratings - Table: BMI Legal Framework Rating - Table: Labour Force Quality - Table: Asia, Annual FDI Inflows - Table: Trade And Investment Ratings - Table: Top Export Destinations, 2002-2008 Competitive Landscape Company Monitor - CapitaLand - City Developments Limited - Dragages Singapore - Keppel Land - Sembcorp Industries - Singapore Land (SingLand) - UOL Group BMI Methodology - How We Generate Our Industry Forecasts - Construction Industry - Bank Lending - Real Estate/Construction Business Environment Rating - Table: Weighting Of Indicators - Project Finance Ratings Indicators - Table: Design And Construction Phase - Table: Commissioning And Operating Phase - Commercial Construction - Full Table of Contents is available at: -- http://www.fastmr.com/ About Business Monitor International Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at http://www.fastmr.com/ About Fast Market Research Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156. # # # Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. End
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