Real estate investment volume in Singapore for Q3 2020 came to S$2.789 bn, a 23.2% increase from the previous quarter. This marks the first increase after three consecutive quarters of decline in investment volume.
The COVID-19 pandemic continued to pile pressure on the economic performance of Singapore. Coupled with the bleak employment outlook, office demand continued to dampen.
Overall demand in the business park market was relatively subdued in Q3 2020 as illustrated by the islandwide net absorption of a mere 15,960 sq. ft. in Q3 2020.
Rental correction accelerated, as rental rebates passed down from the government has mostly expired by the end of Q3 2020.
The residential market continued to surprise on the upside despite the economy undergoing a recession from the ongoing COVID-19 pandemic.
Leasing activity in the quarter consisted mainly of renewals and relocations. While government stockpiling eased off, leasing demand was stable for warehouse and prime logistics spaces.