R. Hirschmann
Research expert covering Singapore, Indonesia and Malaysia
Real estate industry in Singapore - statistics & facts
With just under 729 square kilometers of total land area, Singapore does not have much land to accommodate its 5.45 million inhabitants. Coupled with rising affluence among the population and its role as a regional economic hub, it is thus no wonder that the city-state ranks among the world’s most expensive property markets.
On the other hand, industrial real estate has seen robust growth despite the COVID-19 pandemic, with increasing demand for warehouses to hold growing e-commerce inventory, factories for semiconductor manufacturing, and industrial parks for the biomedical and pharmaceutical industries. However, with limited supply, rents in industrial real estate are expected to remain high.
Residential real estate in Singapore
Singapore’s residential real estate market comprises of public housing under the management of the Housing Development Board (HDB) and private real estate. The majority of Singapore residents live in HDB dwellings, known locally as HDB flats. Home ownership plays a crucial role in Singapore’s nation-building strategy; thus, the purchase of an HDB flat is subsidized and regulated by the government. The purchase of new HDB dwellings is only for Singapore citizens who fulfill certain criteria; non-citizens are eligible to purchase resale HDB flats and private residential property, including landed property. Singapore’s private residential real estate market consists largely of premium and luxury real estate, making such properties a popular investment for foreigners.Commercial and industrial real estate in Singapore
The commercial real estate market, consisting of office, retail, and hospitality properties, suffered occupancy, rent, and income declines due to the movement restrictions imposed during the COVID-19 pandemic. However, with the easing of all COVID-19 restrictions, this sector has started to recover to pre-pandemic levels. Singapore’s office real estate sector has especially benefitted from COVID-19 restrictions in the Chinese and Hong Kong markets as foreign companies seek alternative locations for their Asian offices. This has led to an increase in the planned supply of office spaces in Singapore, while rents for prime office real estate reached more than 11 Singapore dollars per square foot.On the other hand, industrial real estate has seen robust growth despite the COVID-19 pandemic, with increasing demand for warehouses to hold growing e-commerce inventory, factories for semiconductor manufacturing, and industrial parks for the biomedical and pharmaceutical industries. However, with limited supply, rents in industrial real estate are expected to remain high.
