Positive Signs Emerge: Serviced Apartment & Landed Property Sectors Rebound Slightly in Q3 2023

• 18 October 2023
• Local News
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In a real estate market that has largely remained stagnant, there are promising signs of recovery in the service apartment and landed property sectors. The latest data, released by CBRE Research on 5 October 2023, indicates a subtle shift in market demand.

According to the report, the average quoted rent for Grade A serviced apartments has increased by 1%, while Grade B apartments have seen a more substantial 3% rise from the previous quarter. In Q3, the average price for Grade A serviced apartments held steady at approximately US$19.6 per square meter per month, while Grade B apartments averaged around US$3.5 per square metre per month. This upturn in prices is accompanied by a slowing supply, with only 300 new units added.

Turning our attention to the landed property sector, there is a noteworthy positive trend emerging. Link houses have seen an increase of 1.8% in prices, shophouses 0.5%, twin villas around 1.5%, and single villas with a slight 0.1% uptick compared to the previous quarter. Although these increases are modest, they signify a growing momentum in market demand.

However, it’s important to highlight that the completion of ongoing landed property projects seems to be lagging behind expectations, with only 47% completed by Q3 and just three new projects launched.

While other property sectors like retail and condominiums remain stable, there has been a slight drop in office rental prices, following a period of price correction.

This subtle shift in the real estate landscape signifies potential opportunities for investors and homebuyers alike, as the market shows early signs of revival.

• Analysis
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• Economy and Finance