Why Singapore’s commercial real estate is red hot

nvestment in Singapore’s commercial real estate market increased by more 175 percent in the first three quarters of 2019, according to data from JLL, while the city-state has powered past the likes of Tokyo, Sydney, Hong Kong and Melbourne to top Urban Land Institute and PWC’s Best Investment Prospects for 2020. And while investors have grappled with ongoing political and economic uncertainty around the world, the turmoil has reinforced Singapore’s strength as a safe haven given its transparency, political stability, relative neutrality and resilient currency. “Private equity and institutional real estate investors have been more active in the last 24 months due to Singapore’s property market recovering following the pick-up in economic activity in 2016 and 2017, and favourable demand-supply dynamics,” says Tay Huey Ying, Head of Research, JLL Singapore. Singapore’s pole position is supported by the strong interest from global investors for Asian real estate. Investment volumes in Asia Pacific have continued to break records in recent years with the first three quarters of 2019 hitting a record US$125 billion. “We expect Asia Pacific to get an outsized portion of interest from investors who are seeking growth, and Singapore is definitely a key market they will be looking at,” says Regina Lim, Head of Capital Markets Research, JLL South East Asia. She adds that investors see Singapore’s stable policy regime, innovation eco-system and sustainability initiatives as unique attributes that could continue to solidify the city state’s status as a gateway hub in the region.”