Skywaters Residences floor plan

Property developer Hong How Land is planning to open Claydence the boutique condominium located at the intersection of Still Road and Koon Seng Road on February 11. The launch will mark “Hong How Group’s return to residential developments after more than 15 years” According to Teo Teck Weng director at Hong How Land, a joint venture of Hong How Corp (60%) and Marrion Capital (40%). He is the owner of the company along with his older sister Daniel Teo, chairman and director of the Hong How Group; their children also own shares of the firms.

Skywaters Residences floor plan of 268 beautiful apartments, retail space of 86,187 sq ft and offices covering 847,808 sq ft of total Gross Floor Area (GFA).

Its 28-unit Claydence is located on a 23,541 square feet freehold plot that is it is the result of the merger of three adjoining sites which Hong How purchased two years ago. A site has been the site of the previous 29-room Malacca Hotel on 99 and 97 Still Road, and the third site is the adjoining two-storey apartment block located at the 137th floor of Koon Seng Road that is used for workplace and also to conduct its administrative tasks. Hong How purchased the two sites in a single transaction for $21 million through the course of a deal mediated by CBRE at the end of the tender in March 2021. ( Find potential condos by using the block calculation )

Hong How followed up with the purchase of the third site located at the 133 Koon Seng Road for $14.5 million under an agreement with a private treaty four months afterward. The site at 1333 Koon Seng Road is a five-storey apartment building that houses 10 units. Teo discovered that the family who owned the property was planning to sell the property. Therefore, it was logical to buy the site to amalgamate since “the Malacca Hotel site was too small” Teo says. Teo.

The old Malacca Hotel is now destroyed. The five-storey apartment block located at the 133rd floor of Koon Seng Road is the next building to be demolished. As excavation work is being carried out on the site the sale gallery of Claydence can be found at the number 01-09/10, Wilkie Edge, which is located at 8. Wilkie Road. The finalization of Claydence is planned to be completed in April 2026.

Mix of one-to four-bedders
Apartments in Claydence vary from one and three bedroom units. One-bedroom units are 614 sq ft, with two-bedroom units of 786 sq ft and two-bedroom-plus-study units ranging from 872 sq ft to 915 sq ft. Three-bedroom units are 1,076 sq ft, with three-bedroom-plus-study from 1,206 to 1,313 sq ft.

There are four duplex penthouses on the fourth and fifth floors: a two-bedroom penthouse of 980 sq ft, three-bedroom of 1,475 sq ft, a four-bedroom premium of 2,185 sq ft, and four-bedroom-plus-study of 2,164 sq ft.

“We have placed Claydence to appeal to homeowners who are looking for the vibes of the nearby Joo Chiat, and proximity to desirable schools as well as East Coast Park,” Teo says. Teo. The most popular schools within the area are CHIJ Katong Primary and Tao Nan School. It’s also less than 800m away from Eunos MRT Station, which is only one MRT station away from that station. Paya Lebar Interchange Station for the East-West and Circle Lines.

DS Architects is the appointed architect for Claydence and Wallflower as designer. The architects’ initial inspiration for the design of the project was “the New York brownstone” Teo says. Teo. “Theirs is a contemporary version that combines the Brownstones iconic colors to the brick façade features.”

In addition to the brick-tiled façade are the walls and floors that will be finished with European porcelain tile made of white clay. “The name “Claydence” was an inspiration from “clay as the primary material, and also the living” Teo says. Teo.

Facilities, landscaping
Landscapes at Claydence by landscape architect Coen Design International. Coen Design International includes tropical and historic trees and shrubs on Still Road and Koon Seng Road to absorb any noise from traffic. The units will all have aluminum-framed glass panels that lead to balconies. The frames made of aluminium are made by Belgian aluminium manufacturer Reynaers Aluminium “will have wind load resistance as well as noise reduction features” According to Teo.

A basement parking lot will feature 27 parking spaces that will be used by 28 units. This will reduce any fears residents might feel about not being able to get parking spaces -the – “a common annoyance for residents living in small developments with little parking on the first floor” Teo says. Teo.

The communal facilities at the attic include an elevated pool that is shaded by trees and shrubs, a terrace bar with a jacuzzi, an edible garden, and an indoor fitness center. On the ground floor , there are various themed gardens including Chin Chow Garden, Ulam Garden and Ylang Ylang Garden, along with a multi-purpose area as well as a barbeque area.

‘Joo Chiat’s vibes’
It is located at the end situated at the end of Still Road, Claydence is located within walking and cycling distance from Joo Chiat Road. “Joo Chiat has become the next Tiong Bahru,” quips Teo. Famous restaurants located in the Joo Chiat region comprise Fei Fei Wantan Mee, Joo Chiat Place Char Kway Teow and Kim Choo Kueh Chang, along with Spanish Restaurant Asadore along with Italian eateries like Cugini Trattoria Pizzeria.

The sleepy coffee shops that once dotted on the Joo Chiat area are now gourmet bakeries and cafes that are artisanal which range including Tigerlily Patisserie to Tiong Bahru Bakery and Kings Cart Coffee Factory, along with Apiary Ice-cream shop, The Cheese Shop, wine shop Bound By Wine and Japanese butchery Ginkakuji Onishi.

“In the future, the quiet stores on Still Road (towards Eunos) and some on Koon Seng Road might undergo the process of gentrification, taking Joo Chiat’s style towards the doorsteps of Claydence,” says Teo.

Commercial developments
Prior to Claydence Hong How’s development in the last decade and a half was mostly commercial. The buildings include two four-storey, conserved shophouses on 37 and 38 Armenian Street that were built within the Art Deco style between the 1930s and the 1950s. The shops offer a mixture of F&B and art galleries on the lower floor and office spaces in the Soho style in the higher floors.

Another project of Hong How is at 292 Joo Chiat Road, a restored four-storey commercial preservation building. Hong How purchased the building in the year 2016. In the past, there were shops on the first floor and a hostel for students on the higher levels. The prior owner was OCBC who had run an office there from the 1950s.

Hong How restored the building located at 292 Joo Chiat Road and its anchor tenant IWG signed the 10-year lease that runs from April 1st, 2020 to run an area of 20,000 square feet, co-working space. The builder and architect of 292 Joo Chiat Road are the same as for Claydence which is DS Architects and Boon Tian Contractor.

Hong How also project-managed two office buildings in the 47 as well as 50 North Canal Road for Maybank Kim Eng Securities. The company developed and maintains B1 industrial properties for rental income.

‘Resort-style’ developments
The most recent residential development of Hong How is the 51-unit 99-year leasehold boutique condominium Lighthouse located in Pasir Ris near the Pasir Ris Park and the beach. It was first launched in 2001. The construction was finished in the year 2004. When the project first went live the average cost was $483 per square foot Based on caveats filed by URA Realis.

In 2022 the average price of units sold on the resales market was $900 per square foot. It topped an all-time high of $971 when a 1,195 square foot three-bedroom apartment located on the second floor of the four-storey complex traded hands for $1.19 million in September.

In the meantime, Claydence will have prices starting at $1.582 million ($2,577 per square foot) to the 6,14 square feet, one-bedroom unit, up and $5.353 million ($2,450 per square foot) in the case of the 2,185 sq ft four-bedroom penthouse. The “blended price is $2,500 per sq ft,” says Teo.

Even though Claydence is targeted towards small households, Teo sees the project as appealing to couples, singles and investors , too, due to the size of the units. The variety of unit sizes and bedrooms, which include areas for dining at the home, will possess distinct appeal, Teo says.

Teo thinks Claydence will be a hit with buyers from abroad, too, due to its large rooms and resort-style facilities “including areas of breakout space in the lush vegetation”.

Skywaters Residences Shenton Way price

CapitaLand Development, the development part of the real property huge CapitaLand Group, has announced plans to revamp JCube East. JCube site in Jurong East into a 40-storey mixed-use development. It will also contribute to the government’s plans for redevelopment of the larger Jurong Lake District, CapitaLand declares.

Skywaters Residences Shenton Way price proved the market watchers wrong, who expected the redevelopment to result in less office space in the mid to long term.

CapitaLand Development also announced that the day JCube will cease operation is August 6, and JCube will cease operations starting on Aug 7. CapitaLand Development says it is working with tenants who are currently in the mall to offer support throughout the transition process.

In a press announcement on February 7 The developer announced that it had obtained a provisional planning permit through the URA to transform the site to a residential area with commercial spaces on the second and first floors.

The development will be directly linked to the Jurong East MRT Interchange which runs along The North-South as well as the East-West Lines, and eventually the Jurong Regional Line from 2027 and the Cross Island Line from 2030. A pedestrian walkway that is elevated and covered will connect the new development to the adjacent Westgate as well as the IMM Building.

Connectivity to public transport will be enhanced when the project is connected to the planned Jurong East Integrated Transport Hub that will include an air-conditioned bus interchange an open library, a club for the community and a sports facility as well as other commercial areas.

“Leveraging CapitaLand’s development expertise that has won awards we are confident in making the most of the great locational qualities for the site to build high-quality homes that allow residents to take advantage of living in a neighborhood that has facilities for shopping entertainment, entertainment, healthcare training, and education are all within reach,” says Tan Yew Chin the chief executive officer of CapitaLand Development (Singapore).

The launch of sales for the residential portion of the project is scheduled in 2H2023.

Skywaters Residences sales gallery

Boustead Singapore has launched a free unconditional offer to all shares in Boustead Projects it does not have for 90 cents per share.

The company is planning to privatise Boustead Projects and delist it from the Mainboard of SGX ST.

Skywaters Residences sales gallery is expected to house 100 executive hotel rooms, 268 beautiful apartments, retail space of 86,187 sq ft and offices covering 847,808 sq ft of total Gross Floor Area (GFA).

As of February 6 Boustead Singapore directly holds 171 million shares, which is roughly 54.87% of the total number of shares that are issued by Boustead Projects.

The planned acquisition of shares is in the spirit of Boustead Singapore’s plans in its ongoing review of strategic strategies as well as its aim to streamline its investment as well as operations, business operations, as well as the organizational structure of the company.

The company says the fact that Boustead Projects’ engineering and construction (E&C) business was affected by the covid-19 pandemic. It has posted significant lower profits when compared to previous profits in the prior pandemic time.

Boustead Singapore believes that the proposed acquisition will enable it to concentrate on building its business again and its E&C business, as private limited company, without the additional obligations that go along when a company is listed that is listed on the Mainboard SGX-ST.

The proposed acquisition will allow for an improvement in the group structure and also reduce the organizational complexity. This would provide a better concentration on operations and improve efficiency, as well as increasing the value of shareholders.

This offer offers the chance for investors to realize the value of their investments at a price that is superior to market prices currently in place that is about 7.8% over the last exchanged price per share reported on February 3.

The price is also an increase that is 15.2% over the last volume-weighted mean price of the shares over the one month period preceding and including the date of announcement.

The shares of Boustead Projects closed 0.5 cents higher or 0.6% up on Feb 6 at 85 cents.

Skywaters Residences Condo Shenton Way

Skywaters Residences Condo Shenton Way site is set for every living convenience since the Central Business District is just a hop, skip and jump away.

The three bedroom duplex penthouse located at 8M Residences located on Margate Road in District 15 which will be auctioned off at auction by Knight Frank on Feb 16. A private sale by the owner, this 1,841 square feet unit will be sold with an estimated price at $3.55 million. That is equivalent to $1,928 per sq ft of floor area. The unit is leased through August of this year.

8M Residences is an open-air condominium which was completed in the year 2017. The property is situated in the highly sought-after East Coast area, which has amenities, transport connections schools, and premier residential areas -near to stores and shopping centers in Marine Parade Road and the retail and commercial options within Paya Lebar.

The development is comprised of a 20-storey residential building that houses 68 units. The condo is comprised of one-to three-bedroom units as well as four penthouses that range from 517 sq feet to 1,841 square feet.

The unit up for auction will be a duplex corner that is situated on the upper floor. The bedrooms and living areas are located on the lower floor and the top floor is comprised of an outdoor roof terrace, which has the pool.

The master bedroom with a private bathroom as well as the living area come with a balcony. an elevator on the balcony in the living room connects to the second floor. The other bedrooms share a bathroom. The apartment has an unobstructed view of the ocean.

In the past the 1,421 square foot 2 bedroom unit on the fourth floor bought at $1.88 million ($1,323 per square foot) during May. According to the floorplan the unit is also equipped with a private terrace and pool. There were three additional two-bedders with sizes ranging from 646 sq feet to 775 sq ft that sold at prices ranging from $1.34 million ($2,067 per square foot) as well as $1.65 million ($2,129 per square foot) in the year before.

The transaction data of EdgeProp Singapore shows that the average price for 8M Residences is $1,947 per square foot. There are only two projects in the vicinity that are located nearby, such as The View @ Meyer and The Seafront on Meyer have the highest average price of $1,994 per sq ft and $2,012 per sq ft each. The other projects show less expensive averages than the 8M Residences. For instance, the nearby Rivage has an average of $1,613 per square foot. Santa Fe Mansions is averaging $1,560 per sq ft.

A summary of recent rent deals at 8M Residences in Singapore by EdgeProp Singapore also shows an estimated rent variation between $2.80 to $6.40 per sq ft per month (pm). In the 2H2022 three leases were executed for three-bedroom units at 8M Residences. In September of last year three-bedroom units were let for a monthly rental of $4,100 ($4.82 per square foot). In August, a third three-bedroom was let for $700 ($3.78 per square foot) and a third three-bedroom home was rented for $4,000 ($4.71 per square foot) during July.

In accordance with URA rental caveats during the past 12 months, the property has an average rental of $4.60 per square foot, and an average yield of 2.9%. This is slightly higher than some of the adjacent developments, like Rivage (2.7%), Arthur 118 (2.6%), and The Seafront on Meyer (2.3%). The only exception is that Mountbatten Lodge sees the highest average rental yield of 3.9%.

The condo is serviced by major roads and expressways, including Mountbatten Road and the East Coast Parkway. Nearby MRT stations include Mountbatten as well as Dakota located on the Circle Line and later, Katong Park and Tanjong Katong on the Thomson East Coast Line (TEL). The two stations along the TEL are scheduled to open by the end of next year.

Because of the many amenities and conveniences, many top residential neighborhoods are located in the vicinity. 8M Residences is in the Meyer Road enclave, where new condominiums like Liv@MB, One Meyer, Meyer Mansion and MeyerHouse are. The other prime residential areas are located along Amber Road and the bungalow estates on Mountbatten Road and Tanjong Katong Road.

This property being sold could appeal to families with children in school because it is located near Geylang Methodist School at Geylang East Central, Kong Hwa School located at Guillemard Road and Tanjong Katong Primary School on Seraya Road. Other schools nearby are Dunman High School at Tanjong Rhu Road, Chung Cheng High School located at Goodman Road and Tanjong Katong Girls’ School located at Dunman Lane.

Skywaters Residences architect

A four-storey commercial property located at 466 Serangoon Road, near the Farrer Park MRT Station, is available for sale at $20 million. The sole agent for marketing will be CBRE Singapore.

Skywaters Residences architect to house 100 executive hotel rooms, 268 beautiful apartments, retail space of 86,187 sq ft and offices covering 847,808 sq ft of total Gross Floor Area (GFA).

The property is situated within it’s Jalan Besar Conservation Area that covers areas such as the Farrer Park as well as Little India areas. There are several significant commercial developments nearby, including City Square Mall, Connexion, Centrium Square, Uptown @ Farrer, Lyf at Farrer and the planned Piccadilly Grand integrated development along Northumberland Road.

The property is located on the 2,236 square feet site with prominent road frontage on Serangoon Road. The site is a 999-year lease which began in the year 1860. The property is comprised of an overall floor space of 8,890 square feet with the walkway being covered as well as a private car park that has three parking areas.

CBR claims that it is possible that the empty property could be a subject to names and signage rights. This means that the price guide is about $2250 per square foot of floor area. Because it’s commercial property that is open to foreigners, they are able to purchase it and there is no buyer’s or seller’s stamp tax will be assessed on the purchase.

“(The property) represents a excellent opportunity for buyers to purchase a 999-year commercial property that is a desirable amount of investment in a desirable city-fringe area, backed by an excellent transport facilities,” states Clemence Lee Clemence Lee, chief executive officer of the capital market Singapore at CBRE.

The property is “ideal for a prospective buyer looking to capitalize on the area’s development and potential to earn rental and capital gains to come”.

The sale will take place by way of expressions of interest that closes on March 7.

Skywaters Residences launch

The prices of private residential properties rose by 0.4% q-o-q in 4Q2022. This was slightly higher rate that what was recorded in the 0.2% q-o-q increase indicated in the estimates flash released by URA on the 3rd of January. However, it’s an impressive drop compared to 3Q2022, which saw a 3.8% q-o-q increase that was observed in the third quarter of 2022.

In the entire 2022 year prices for private residential properties rose up by 8.6%, moderating from the 10.6% price increase in 2021.

Skywaters Residences launch will generate the same or more office space than the current building based on Net Lettable Area (NLA).

The increase in prices for non-landed goods during the quarter was led to sales within the Rest of Central Region (RCR) that recorded an rise of 3.1% q-o-q, maintaining a record-breaking run of 2.8% q-o-q increase in the 2Q2022.

As per Tricia Song, the head for research Southeast Asia, at CBRE The increase was driven by the high prices on current project Riviere and One Pearl Bank that were included among the 10 top most-sold projects of 2022.

Other projects that are on the listing are Lentor Modern located in the Outside Central Region (OCR) with the median price of $2,108 per square foot for 2022. Normanton Park in the RCR, with an average price of $1865 per square feet and Amo residence within the OCR with a median cost of $2,110 per square foot.

OCR prices started off from an extremely high starting point and therefore saw the 2.6% q-o-q decline in 4Q2022, which was down from the 7.5% q-o-q hike in the preceding quarter. In 2022 as a whole, RCR prices increased 9.7% year-over-year, and OCR prices increased 9.3% y-o-y, based on research conducted by CBRE.

Along with the lack of new launches within the OCR that could push price upwards, the rising rates of interest and tighter borrowing requirements contributed to the according to Nicholas Mak, head of research and consulting of ERA Realty.

“Most of those who purchase OCR privately owned housing like HDB upgraders, tend to be more price-sensitive and have lower cash reserves for purchase of homes. Therefore, the demand for housing in private homes from this segment of buyers will be significantly affected by the cooling measures in September 2022 measures, which are accompanied by the higher interest rates,” the expert adds.

Market for a subdued launch

In terms of volume of transactions in the quarter ended December 31, sales were to a comparatively low 690 units on the new launch market, while 2898 units traded hands on the second market. In FY2022 the number of new sales, and 14,791 resales as well as sub-sales.

It’s 21,890 transactions. This represents the equivalent of a 34.8% decrease compared to the 33,557 units that were sold in 2021. Based on Leonard Tay, head of research at Knight Frank Singapore, this is not due to a shortage of demand for homes and the absence of available inventory for sale available on the market.

He continues: “The handful of notable new launches during 4Q2022 the imminent global recession and the high-interest rates has also led to transaction activity slowing towards the end of the year due to the absence of available listings forced homeowners to adopt an open-ended approach until more homes become available.”

Developers were cautious and only released 504 units available to be sold in 4Q202, according the CBRE Song. In the last quarter, new projects introduced for the first time included Kovan Jewel (34 units), Enchante (25 units), Hill House (72 units) along with Sophia Regency (38 units).

“The take-up rate was generally moderate at these new launches, since home-buying enthusiasm in Q42022 was hurt due to the worsening macroeconomic environment as well as the high mortgage rates” she says.

A handful of home sellers are landed

The prices in the landed home market increased by 0.6% q-o-q last quarter which brought the total rise for 2022 at 9.6%.

“Prices of homes that are landed have continued to increase, but are limited by sellers’ resistance to put their houses for sale,” says Knight Frank’s Tay. “Even although buyers are prepared to provide reasonable price premiums for homeowners who own land to sell, the majority of them were reluctant to selling their homes, and some were swayed due to the lengthy wait time of 15 months for those looking to downgrade their homes and purchase HDB Flats.”

This is a reference to the most recent property cooling measures that were announced on September 30, in the year before, which impacts private property homeowners looking to buy an resales five or four-room HDB apartment by giving them a 15-month waiting period following the sale of their own property. ( Find HDB flats available for rental or for sale in the Singapore HDB directory )

Buffet spread 2023 releases

The overall optimism that was the property market in 2022 was hindered by a dearth in new projects, the coming year will witness a flurry of ready-to-launch new projects enter the market. More than 40 new developments are anticipated to be ready for launch this year.

“The new launches for 2023 should bring some relief from the shortage situation , and will provide buyers with more options of products in various locations,” says Tay.

However, he warns that the expected increase in sales volumes is occurring amid economic uncertainty, job cuts in the tech sector and the continued rise in interest rates , and the increasing cost of living.

However, the fundamentals remain to propel the private residential market in Singapore according to Chia Siew Chuin, the head of research on residential homes, research and consulting for JLL Singapore. “Healthy liquidity of the household, competitive employment market and the appeal to Singapore as a safe haven for foreign investors are likely to continue to fuel home buying interest,” she notes.

She says the anticipated return of mainland China is likely to increase demand for goods here.

The debut of a new launch this year with two-68 unit Sceneca Residence at Tanah Merah Kechil Link, had a strong result in sales that saw the sale of 60% of the units available. “This positive result should help to be a source of confidence in the strength in the marketplace and establish the stage for the next launches scheduled for Feb and Mar,” adds Lee Sze Teck who is the senior director for research for Huttons Asia.

Read related article: At a guide price of $85 million, the commercial building GSM Building is being offered for collective sale

At a guide price of $85 million, the commercial building GSM Building is being offered for collective sale

Industrial rents increased in 2.1% q-o-q in 4Q2022 and remained at the same rate of growth recorded in last quarter, according to the data published by JTC on the 26th of January. This is the 9th consecutive quarter of growth, which brings the full-year growth in rental at 6.9% for 2022, exceeding the 2% growth recorded in 2021.

Prices for industrial properties have increased to 1.7% q-o-q in 4Q2022 which brought the full-year rate of growth up to 7.5%. “This is the highest rate of growth for both prices and rents since 2012” notes Lee Sze Teck, senior director of analysis for Huttons Asia.

The overall occupancy rate for industrial properties decreased in 0.3 percentage points in the 4Q2022 up to 89.4%. The drop was driven by an increase in new building completions, which saw 5.2 million square feet of industrial space being completed in the 4Q2022 period – the most since the year 2017. The increase in supply was greater than demand, which was at 2.9 million square feet in 4Q2022, based upon the total inventory occupied.

Multi-user factories experienced the greatest rent increases in 4Q2022, recording increases by 2.6% q-o-q. Tricia Song, the head of research for Southeast Asia at CBRE believes that the increase may be due to the higher rents that were realised in recently completed projects such as INSPACE located at Industrial Road and 165 Kallang Way. “While occupancy levels for multi-user factories are down 0.1 percentage point between q-o-q in 4Q2022, and 1.1 percentage points year-on-year in the 4Q2022 period, CBRE Research believes that there’s a trend towards high-end quality because the demand for newer and better-quality factories, particularly high-tech industrial spaces has been steady and the higher rents are a result,” she adds.

In 2022 as a whole multi-user facilities saw rent increase in the range of 8.3%, the highest in all industrial sectors and beating that of 2.5% growth registered in 2021. “We believe that this is driven predominantly by the shortage of space for high-quality and highly-specified spaces for industrial use,” says Tay Huey Yun, director of research and consultancy Singapore with JLL. Tay says that the absorption net of multi-factory spaces in 2022 will be the highest to this point.

Rents for warehouses increased in 2.2% q-o-q in 4Q2022 increasing from 1.9% growth registered in 3Q2022. Warehouse occupancy improved by 0.9% q-o-q to reach 91.7% in 4Q2022, which CBRE’s Song declares is the highest level since 3Q2015. Full-year rental growth for warehouses came as 7.9%, compared to 2.7% in 2021, CBRE’s Song is attributed to the steady demand from businesses who continued to implement with their “just-in-case” inventory plans due to the ongoing Ukraine-Russia conflict as well as the tight supply of new inventory.

Lam Chern Woon, head of research and consulting at Edmund Tie, points out that warehouses are the only segment that saw an increase in occupancy in the 4Q2022 quarter. “Despite some warehouse completions during the quarter, the overall stock in warehouses fell by 9,000 sqm. This could be because of the elimination of some inventory in order to modernize it to meet the needs of modern logistics,” he expands.

In addition, single-user factory rents increased by 1.3% q-o-q, while the business park rental rate increased to 1.0% q-o-q in 4Q2022. Brenda Ong, executive director of industrial and logistics for Cushman & Wakefield, adds that the business park sector is still a two-tiered market where rents and demand are much higher for business parks in the city fringe in comparison to their adjacent counterparts.

Moving forward Edmund Tie’s Lam expects lower rental growth in 2023 due to an environment that is less favorable. “Industrialists are likely to be cautious while leasing demand in outward-oriented industries like manufacturing and electronics are likely to decrease due to the worldwide semiconductor downcycle,” he explains.

Additionally, the influx of supply could limit rent growth. Around 18.9 million square feet of new construction is expected to be in operation by 2023 and that, as Huttons’ Lee highlights is the highest amount since the year 2017. The majority of the new constructions are single-user factories and new warehouses will make up 5.3 million square feet.

Leonard Tay, head of research at Knight Frank Singapore, believes that industrial rents will keep rising in 2023 but at a slow rate. “Despite the expected increase in industrial supply amid a decline in exports and a declining manufacturing outlook, Singapore will continue to draw fixed asset investments into the manufacturing industry as multinational companies search for countries with stability in the political arena with a well-educated workforce as well as modern infrastructure as part of their flight-to-stability strategy,” he opines.

He expects an increase in industrial rents of between 1% or 3% for the entire period of 2023. He also says that in the logistics sector where space is limited renting for warehouses with high-quality space could increase up to 3% up to%.

Cushman and Wakefield’s Ong agrees. She expects rent growth and industrial prices to slow to around one% or 4% in 2023. However, warehouse rents may still be higher than in the event of a robust demand.

Read also: Along Joo Chiat Road and Joo Chiat Lane, the shophouses have a frontage of 70 meters

Along Joo Chiat Road and Joo Chiat Lane, the shophouses have a frontage of 70 meters

The growth in the Singapore retail market picked up steam during the latter part of the year because of social distancing rules being eased and the reopening of borders. “The retail sector fought hard and is now through an extremely difficult period of unprecedented pressure, but is now getting started to gain momentum from the elimination of the measures beginning in 2Q2022 and beyond,” says Ethan Hsu, Knight Frank Singapore’s retail head.

According to the data from Knight Frank Research, prime retail rents across the island increased 1.7% q-o-q in 4Q2022 to average $26.10 per month. The full-year peak retail rents up to 2.6% for 2022.

In its report on the retail sector for 4Q2022, Knight Frank notes that prime retail locations located in areas like the Orchard Road area led the way with regards to rental growth with an average increase by 3.1% y-o-y in 4Q2022 to $29.10 per month. This was being followed by prime retail spaces within the Marina Centre, City Hall and Bugis sub-markets, which recorded an increase by 2.6% y-o-y to $23.90 per month. The increase in rent was helped by an increasing number of tourists from abroad as well as the return of employees to work.

A separate report from Edmund Tie Research also highlights evidence that further indicates the growing the demand for retail space in the Orchard region. Based on the track of retail assets by the company, the prime retail spaces on the first floor of Orchard along with Scotts Road saw the strongest rent increase that was 7.4% for the whole of 2022, ranging from $39.20 per sq ft per month. In the suburban and fringe regions, rents increased to 6.7% in 2022 to $33.10 per month. however, in other cities they increased to 3.7% to $19.20 psf per month. This is based on Edmund Tie’s statistics.

Edmund Tie’s research reveals it was 3Q2022 when the island’s retail space absorption was recorded at 323,000 sq ft. This is an increase of fourfold from 86,000 sq ft recorded in the previous quarter, which indicates an increase in demand.

Lam Chern Woon, head of research and consulting at Edmund Tie, expects a brighter future in retailers in the property market, which is bolstered by the ongoing growth in the sector of tourism. “With the majority of the pipeline for supply set to start coming on stream in 2023, which includes The Woodleigh Mall, and retail stores at One Holland Village, Guoco Midtown and IOI Central, the supply-demand patterns are predicted to be balanced in the coming year.” He adds.

The company is forecasting that prime retail rents on the first floor for Orchard as well as Scotts Road to sustain its growth approximately 7% to 9% in 2023. In contrast, rents in other sub-markets of retail are expected to increase by between% to 6%.

Knight Frank’s Hsu also projects the prime rent for retail to keep increasing this year, pointing out that the retail industry is “in an excellent position right now” considering the rise of taxes like the Goods and Services Tax (GST) and a more muted economic outlook. “So long as there’s no limits on the size of gatherings and the requirements for quarantine for cross-border arrivals, prime rents for retail spaces are expected to rise between 3% to 5% over the course of 2023. The affluent shopping area Orchard Road leading the recovery,” he predicts.

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According to the global workspace firm IWG IWG, the world of business is close to a significant moment where over half of the workforce employed by professionals around the world use a hybrid model of working.

In its most recent report 2023 Trends Forecast to the Next Generation of Work, IWG says that this shift in the workplace’s mindset is likely to occur within over the course of five years. If this happens it will mean that the percentage of professionals who work from one place will be lower than the average for the first time in history.

“Hybrid working is the preferred option for millions of people in which they split their working time between their company’s headquarters, local flexible workspace, and their homes,” says Mark Dixon IWG’s CEO Mark Dixon. IWG.

This approach of balancing various working environments can boost productivity in the workplace and provides a environmentally sustainable approach to working, according to Dixon. “It is evident that more changes are on their road, as our daily lives are affected by technological advances and innovative concepts in areas like sustainability technology, recruitment, and efficiency.”

Future trends
One of the major trends forecast from IWG is a major change in the corporate culture as businesses concentrate on results, instead of counting the amount of time employees work during the week. “Productivity is becoming a top priority for companies, particularly in turbulent economy,” IWG says. IWG.

A growing trend is the work week that is four days long frequently discussed, but never applied corporate rule.

According to IWG the coming year will see more businesses adopt the four-day-week model however, they must ensure that they’re confident it won’t result in an overall decrease in productivity. The surveys conducted of IWG also suggest that employees who are seeking improved flexibility at work and a better life balance are more likely to adopt this approach as well.

Gen Z workers are a significant part of the workforce. Gen Z workers will help to accelerate this trend since they comprise 55% of Gen Z workers surveyed by IWG believe that they will see that a four-day week will become the norm over the coming years, according to the report. Gen Z refers to the generation born between the end of the 1990s to the beginning of 2010.

But, businesses shouldn’t consider this as a way to reduce wages by five percent according to IWG. Workplace trials under the four-day model generally follow a 100:80:100 formulathat is, 100% of the salary for the first 80% all the time as well as a pledge to ensure 100% productivity.

Virtual workspaces
Technology will continue to influence the direction of the next workplace trends with advances of the field of virtual reality (VR) as well as the use AI (AI) as per IWG. The potential of a virtual workspace has led companies like Meta as well as Microsoft to launch a variety of work tools that can be used in VR and other businesses are investing in the creation of their own virtual spaces as well as real property.

In the end, the concept to work anywhere in the globe will become an option for more and more workers.

One of the biggest companies that offer flexible workspaces across worldwide, IWG points to its more than 3,500 locations in 120 countries as an opportunity for workers on the move to join in and get work done.

“It is sensible for those who would like to explore greater diversity and working in the same way and with as much ease as they previously worked from home, at the comfort of their home office or in a central headquarters,” says Dixon.

The city of Singapore, IWG has 22 sites. It has rolled out 4 of their flexible workplace brands in Singapore: Regus, Spaces, Signature by Regus and the luxurious No18. The most recent one is a 10,328 square feet Regus center in the Hiap Hoe Building in Balestier’s Zhongshan Park.

The technology is being used to assist employers and landlords better know how their spaces are being used. “Companies are gaining insights from multiple sources like employee productivity as well as environmental data that includes the levels of humidity, heat, noise and power consumption to design the workplace in the near future, and minimizing the environmental impact” Dixon says. Dixon.

‘Green leases’
The greater awareness of their impact on the environment is due to the fact that companies are putting sustainability at the forefront of their business plans according to IWG. The group says there is a growing trend that property owners are investing in upgrading their properties and facilities to include the most sustainable features. Furthermore an increasing number of corporate tenants are looking to sign “green leases” which permit both the occupier and the owner to collaborate to create buildings that are more eco-friendly and less harmful to the environment.

The typical provisions of”green leases” typically “green lease” include issues like carbon emissions as well as conformity with local regulations for energy efficiency as well as waste reduction strategies. green transport strategies.

This emphasis on sustainability is tied to the emergence in hybrid working. On one hand firms are cutting down on their real estate portfolios and focus on premium eco-friendly workspaces and buildings. However the reduction in employee commuting each day helps to create the environment being cleaner and greener.

In its report IWG draws on research from Deepki, the Real estate ESG data intelligence company, which has found that the majority of green structures are located in Europe have higher asset values for real estate agents in commercial properties. This benefit generally can translate into an increase of 16% up to 28% rise in property value. The reason for this is the increased will of tenants to pay higher rent in order to live in an energy-efficient structure.

Furthermore, research conducted by the global real estate consulting firm Cushman & Wakefield indicates that Leed-certified Class A office space can generate an increase in psf in the range of 25.3% compared to non-certified buildings. Leed (Leadership in Energy and Environmental Design) is the most popular sustainable building ratings system across the world. In Singapore there is it is the Green Mark certification is a similar green building system that is specifically designed for buildings with the tropical climate.

Great Lease Resignation
All of these contribute to a phenomenon known as “Great Lease Resignation” which was that was coined by Dixon. It is a reference to corporate tenants refusing traditional leases for office space to go with more flexible leases.

This trend is expected to increase as leases are due to expire and businesses seek to reap the savings that come with hybrid work. The shift to hybrid work can be beneficial to retention of talent and attract more employees particularly among the upcoming group comprising Gen Z workers.

However this also means that time spent at the office is even more valuable as per IWG. According to the report “connecting and working together in person is an important element of the equation that is hybrid. However, it must be done in a deliberate manner. The simple act of announcing anchor day dates doesn’t suffice. Team days must be planned and serve an explicit purpose. The same is true when it comes to meetings”.

Dixon states: “The most successful companies are now focused on how meetings function. It’s no longer sufficient to set up a meeting then decide to go with the flow. If you want people to take the time to gather in the workplace it’s crucial that to use their time productively.”

It is expected that the future of employment will continue to be guided by a desire to improve the work experience of employees by utilizing new technologies to improve efficiency and increase productivity, according to IWG. A greater understanding of well-being and sustainability is also a major factor in the debates about how to improve the work environment.

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City Developments Limited (CDL) is ranked 28th on 2023’s Global 100 ranking, maintaining its position as the top real estate company in the world and the most efficient Singapore company.

The Global 100, compiled annually by the Toronto-based media and investment analysis business Corporate Knights, ranks the most sustainable businesses in the world. The list for this year’s edition, more than 6,700 companies earning more than $1 billion ($1.33 billion) in annual revenue were evaluated using a set of important performance indicators, which include the management of resources, employee management as well as finance management, sustainable revenues management, sustainable investment, as well as the performance of their suppliers.

“CDL is honored to have been included on the Global 100 Most Sustainable Corporations for the 14th year in a row,” remarks Sherman Kwek, CDL group CEO, in a press announcement. “As the world moves towards a net-zero goal, CDL will continue to actively contribute to the global sustainability agenda and a sustainability path we began over two decades in the past.”

CapitaLand was also recognized in The Global 100, ranking 56th in the list . This is an increase of 19 places over the previous year’s rankings. CapitaLand has made its way onto the Global 100 list for 11 consecutive years. “CLI’s regular inclusion in prestigious indexes like The Global 100, Dow Jones Sustainability Indices, and GRESB is proof of our leadership in global sustainability in the field of real estate,” Vinamra Srivastava, the chief of CLI’s sustainability department.