SINGAPORE Trends and Developments Contributed by: Monica Yip and Dorothy Marie Ng, WongPartnership
WongPartnership LLP 12 Marina Boulevard Level 28 Marina Bay Financial Centre Tower 3 Singapore 018982 Tel: +65 6416 8000 Fax: +65 6532 5711/5722 Email: contactus@wongpartnership.com Web: www.wongpartnership.com
General Investments in Singapore real estate increased in 2024. This may be attributed to several fac - tors, including investor confidence arising out of the anticipated and subsequent interest rate cut for the first time in four years, as well as pent-up demand for good quality commercial space. The largest transaction for 2024 in the retail sec - tor saw the disposal by CapitaLand Investment Limited of its 50% indirect interest in the luxury mall ION Orchard situated on Singapore’s most famous shopping belt. The biggest transaction of residential land was the collective purchase by the joint venture of well-known developers, UOL Group Limited and CapitaLand, of Thom - son View Condominium. This transaction gave the residential sector a much needed boost in a year where investment sales of residential land were not strong. Several pieces of legislation that will impact the decisions of investors and practices of real estate owners and managers came into effect or were passed in 2024.
Commercial Leases The market for commercial leases rebounded in the first half of 2024 but declined in the last quar - ter. Grade A buildings in the Central Business District (CBD) remained in demand, with slightly higher rates of rent. The continued evolution of work arrangements and processes saw organi - sations grappling with employees’ expectation or desire for work-from-home arrangements, and the increased incorporation of technology and artificial intelligence resulted in the reduc - tion in size of many office leases. Yet the aim of fostering integration of various teams had some organisations requiring their staff to spend more days in the office, and this led to such organi - sations maintaining the size of their offices. The high cost of reinstatement and fitting-out resulted in some tenants remaining in the same premises and renewing their leases instead of moving to alternative premises at lower rents. Demand for office space by the technology sec - tor was weak given a slowdown in the industry and market uncertainty. Hospitality “Revenge travel” , concerts and large-scale entertainment events in the aftermath of the COVID-19 lockdown led to a spike in the hospi -
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