Based on advanced estimates by the Ministry of Trade and Industry (MTI), the Singapore economy grew by 5.1% year-on-year (y-o-y) and 0.1% quarter-on-quarter (q-o-q) in Q1 due to stronger expansion in the manufacturing and construction sectors.
Real estate investments rose about 24% q-o-q to $4.7bn in Q1. Although residential investments made up 41% of activity in Q1, investment activity going forward is expected to be driven by non-residential deals, as residential collective sales remain difficult and there are fewer residential sites on the H1 2014 Government Land Sales (GLS) programme.
Continuing from the healthy leasing activity in H2 2013, the office market recorded another quarter of strong take-up in Q1 2014. With limited supply, rents in the CBD are expected to grow between 10 to 15% in 2014.
Source : DTZ (Groupe UGL)