Singapore’s gravity-defying property prices hurt productivity, innovation and diversity
A radical rethink of how real estate is allocated and priced in Singapore may be necessary
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SINGAPORE’S property market continues to defy gravity. Office rents climbed 3.1 per cent in the second quarter, according to data from the Urban Redevelopment Authority, even though the stock of office space rose. Industrial rents increased 1 per cent and retail rents remained unchanged.
There is downward pressure, to be sure. Retail rents dipped 0.4 per cent in the first quarter, for instance, and landlords are doing more to retain and attract tenants.
Nevertheless, the Singapore property market is probably among the brightest spots globally. Consultancy Savills expects the country’s investment property sales to range from S$22 billion to S$23 billion this year, up from S$19.7 billion last year.
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