ECONOMY: With the pandemic contained locally and access to vaccination secured, brighter prospects are expected. However, this is likely to be a slow and uneven recovery. Meanwhile, prolonged low interest rates are poised to create a favourable real estate investment environment.

 

OFFICE: 2021 is envisaged to be a year of two halves. While H1 2021 is expected to still be under some pressure, the latter half is likely to witness some improvement. Continued demand for office space, with the limited Grade A supply in the pipeline will support office rental growth in the second half of 2021.

 

RETAIL: Store expansions and openings are expected to go ahead as retailers readapt to the new retail environment post COVID-19. Recovery of the retail market is expected to be long drawn, given the risks and uncertainties that still linger, though it will be mitigated by the moderate level of upcoming supply.

 

RESIDENTIAL: Emboldened by 2020’s sales performance, developers are likely to capitalise on this sales momentum to clear their remaining project inventory in 2021. Buying sentiment is expected to remain strong and help support demand for upcoming new launches though underlying risks still remain. 

 

LOGISTICS: Logistics has remained a resilient asset class amid the pandemic, with stable rental growth expected in line with the gradual recovery of Singapore’s economy. Further, the subdued supply pipeline will continue to lend support to occupancy.

 

CAPITAL MARKETS: CBRE believes that investment sales volume in 2021 is likely to rebound by around 30% from 2020. This will be led by residential, office, and industrial sales. There will also be renewed interest in retail and hospitality assets, as investors would be on the lookout to acquiring these assets at more opportunistic levels.