For the second part of the trilogy, I shall touch on the Commercial part of property.
Retail
If you are into stocks, you should know that retail REITs are doing pretty well. As always, rental for units in good locations are expected to go up which will spillover to the neighborhoods. Good Strata units are decreasing which explains for the increase in the asking price.
Shophouses are very versatile property which can be used for a lot of purposes and the rental yield will better if rented out to certain retail business.
Office (CBD)
No doubt the new Marina Bay Financial Centre has an impact on the CBD offices rental price, however some of the older buildings in the area, which are slated for redevelopment should mitigate the decrease in rental price. Some companies are using this opportunity to expand their sizes. With the intention of having a premium address, there are still MNC companies (especially those in finance industry) looking to rent a unit.
However, the above are for large office sizes. There is a very strong demand for smaller size strata titled offices for both SMEs and investors, especially those under $2 million price tag. We can already see the demand spilling over to nearby areas like Clarke Quay.
Recent Comments