July 2022

Property Market Monitor

Office Key Economic Indicators

GDP Real Growth
• Leasing activities picked up pace in 2Q22, supported by Singapore's (2Q22, y-o-y, advance 4.8%
growing appeal as a business hub and the lifting of COVID-19 restriction on estimates)
employees returning to the workplace. Consumer Price Index
5.6%
• Overall CBD investment grade office rents continued to climb in 2Q22 to (May 2022, y-o-y)
stand just below its pre-pandemic peak level in 4Q19. Total Trade (current prices)
32.4%
(May 2022, y-o-y)
• Capital values of CBD investment grade offices stayed on the uptrend but
Index of Industrial Production
the pace of growth slowed in 2Q22 amid rising interest rate concerns. 13.8%
(May 2022, y-o-y)
• The ongoing geopolitical tensions and economic uncertainty could Retail Sales excl. motor vehicles
dampen occupier demand and slow rent growth in the short-term. (chained-volume terms) 19.5%
Investors risk appetite and bid prices may also be restrained by rising (May 2022, y-o-y)
interest rates, leading to a short-term softening in capital values. Unemployment Rate (S.A.)
2.2%
(May 2022)
Total Population Annual
32.1 10.74 2.6% 3,269 1.7% Growth -4.1%
Current Gross Rental Capital Capital (June 2021)
stock effective rent growth value value growth Source: DOS
(sq ft million) (SGD psf pm NLA) (q-o-q) (SGD psf NLA) (q-o-q) Major Property Transactions | 2Q22
All data is reflective of CBD Investment Grade offices Price
Office
(SGD mil)
Comcentre
798.7
Residential (49% interest in JV entity)
Westgate Tower 675.0
• Prime new home sales witnessed stronger take-up in 2Q22 despite an
absence of fresh Prime project launches. Resale volume also trended Suntec City Tower Two
38.8
(strata)
upward, resulting in a rise in overall Prime transaction volume q-o-q.
Price
Residential
• Stronger demand for Prime properties and prices rising at a faster q-o-q (SGD mil)
pace in 2Q22 indicate that sentiment has improved since the cooling Dunman Road (GLS) 1,283.9
measures were imposed in December 2021. Growth in Prime rents also Pine Grove (Parcel A) (GLS) 671.5
picked up pace in the quarter, underpinned by healthy leasing demand and Lakeside Apartments (collective 273.9
limited supply of units. sale)
• No residential collective-sale deals were concluded in the Prime districts Price
Retail
during the quarter, as developers remain wary due to macroeconomic (SGD mil)
uncertainties and rising development costs. The mismatch in price 12, 14, 16 Teck Lim Road 53.4
expectations between developers and sellers makes it difficult to close Block 201 Tampines Street 21 41.7
collective sales. (coffeeshop)
Block 848 Yishun Street 81 40.0
• Prime rents are expected to continue rising for the rest of the year, as
(coffeeshop)
leasing demand is likely to be firm while supply of units for rent remains
tight. Sales prices are also expected to continue rising although sharp Price
Industrial
interest rates increases could cap growth. (SGD mil)
BHL Factories 130.0
Victory Centre 90.0
60,977 5.45 3.8% 3,220 2.0%
Current Gross Food Empire Building (100%
Rental Capital Capital 49.3
interest in holding entity)
Prime stock effective rent growth value value growth
(units) (SGD psf pm NLA) (q-o-q) (SGD psf NLA) (q-o-q) Source: JLL Research, July 2022

The capital value and rental value indicators are reflective of luxury residential properties
 Retail
• The extensive easing of COVID-19 measures and travel restrictions
accelerated the pace of domestic consumption and tourism spending as
visitor arrivals grew. Over the first two months in 2Q22, the retail sales index Authors
(excluding motor vehicles) in chained-volume terms rose an encouraging
17.0% y-o-y, compared to growth of 8.7% y-o-y in 1Q22.
Tay Huey Ying
• Improved retailer confidence continued to spur business expansion, Head of Research &
driving vacancy rates lower. This supported the third consecutive quarter Consultancy
of rent recovery for prime floor space across the three sub-markets in 2Q22. Singapore
Hueyying.tay@ap.jll.com
• On the back of rent growth, capital values of prime floor space grew q-o-q
across the three sub-markets in 2Q22, the fourth consecutive quarterly rise.
• Singapore's commitment to reopening the economy and transitioning Sara Ong
towards endemic COVID-19 will continue to drive retail sales and Analyst,
encourage business expansion. Rents are expected to stay on the growth Residential Research
path for the rest of 2022 amidst a falling vacancy rate outlook, while a Singapore
Sara.ong@ap.jll.com
positive retail rent outlook should underpin retail asset prices.

5.1 35.58 0.7% 8,441 0.3%

Current Gross Rental Capital Capital Angelia Phua
stock effective rent growth value value growth Consulting Director,
(sq ft million) (SGD psf pm NLA) (q-o-q) (SGD psf NLA) (q-o-q) Retail Research
All data is reflective of the Prime sub-market
Singapore
Angelia.phua@ap.jll.com

Warehouse Doreen Goh

• Third-party logistics players with expansion needs, end-users from a broad Director,
base of industries as well as firms in the e-commerce and cold storage Industrial Research
businesses continue to underpin logistics/warehouse demand in 2Q22. Singapore
Doreen.goh@ap.jll.com
Several new-to-Singapore companies, and those with an office presence
are also looking to set up regional distribution centres.
• Amid continued stiff competition for space, especially for better quality Michelle Tee
premises, the average islandwide logistics/warehouse rent rose for the Director,
fifth-straight quarter and at its fastest quarterly pace since heading north Office Research
in 2Q21. This, in turn, supported the rise in capital values in 2Q22. Singapore
Michelle.tee@ap.jll.com
• While there is potential for further rent and capital value growth, the growth
pace could slow down for the rest of 2022, due to heightened
macroeconomic headwinds and faster-than-envisaged rise in interest
rates. JLL Singapore
88 Market Street
122.6 1.46 2.1% 205 2.5% #35-01 CapitaSpring
Current Gross Rental Capital Capital Singapore 048948
stock effective rent growth value value growth jll.com.sg
(sq ft million) (SGD psf pm NLA) (q-o-q) (SGD psf NLA) (q-o-q)
All data is reflective of the islandwide market Bandits

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