Singapore Residential Leasing Briefing Q3/2011

By Savills Research | Singapore

“Leasing volume reached a new high with 13,028 leases signed in Q3, defying cautionary headwinds sparked by the deepening crises in the US and eurozone.”

Key findings:

• Singapore’s economy grew by 5.9% in the reviewed quarter, driven mainly by an expansion in the biomedical manufacturing cluster.

• In view of the on going weakness in the global economy, Singapore’s GDP growth forecast for 2011 has been downgraded by the Ministry of Trade and Industry (MTI) from 5%–7% to around 5%.

• Hiring expectations fell from 56% in Q3 to 42% in Q4, with the banking and fi nancial services sector reporting the lowest expectations.

• Leasing demand continued to surge with an impressive 13,028 leases signed in Q3.

• Rents of private residential properties rose at a slower pace of 0.8%.

• The average monthly rent for high-end non-landed residential properties tracked by Savills held steady at S$5.37 per sq ft per month.

• Rental growth for luxury residential homes is expected to hover between 1% and 2% for the full year of 2011.

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