The Business Times - Dec 19
After Singapore's residential and office markets made comebacks, the next property sector to bet on might just be its hotels.
The hotel industry is heading into 2019 in good shape after boosts to visitor arrivals from the Trump-Kim summit and the romantic comedy "Crazy Rich Asians.
Occupancy rates climbed across luxury, upscale, mid-tier and economy rooms. Revenue per available room rose 4 per cent to S$190.40 through October from a year earlier, reversing years of declines. Average daily room rates inched higher for all but luxury accommodation.
Govinda Singh, Executive Director, Valuation & Advisory Services:
In line with our forecasts, ADR for hotels in Singapore are likely to finish the year with growth of circa 2% year-on-year, as the rapid new supply of previous years were absorbed by the market. With sustained growth in tourist arrivals and a depressed hotel room supply pipeline, we expect hotels in Singapore – particularly luxury and economy - to continue to perform well in 2019. Broadly, we expect room occupancy rate to likely trend in the region of 86% in 2019 with potential uplifts in RevPAR of between 1-3% as hoteliers pursue a yield maximisation strategy. However, headwinds prevail, with geo-political risks, global trade tensions and foreign currency movements, as well as a looming economic slowdown, particularly towards the end of Q3, potentially throwing a spanner in the works.
The Business Times - Dec 25
The outlook for the private residential leasing market looks promising in 2019, with rent and occupancy rates likely to improve as supply eases and demand continues to be supported by displaced owners.
According to data from the Urban Redevelopment Authority (URA), a total of 10,119 private residential units are slated for completion in 2019, higher than the 7,898 units that could be completed this year.
Tricia Song, Head of Research:
In Q3 2018, the overall private residential rental index rose for the third consecutive quarter, up 0.3% QOQ, decelerating from a 1.0% rise in Q2. Rents have lagged prices by three quarters, and are still 11.9% below their peak in Q3 2013.
Given the easing supply going forward, we expect occupancy to continue to improve and rents could recover by another 1% in Q4 2018, and 5% for the whole of 2019, barring any external shocks. Overall rents on psf basis should improve with easing new stock, and smaller and efficient unit layouts. Some projects could set benchmark rents such as North Park Residences in the OCR and Principal Garden could also support the rents in the RCR.
The Business Times - Dec 21
Singapore-based JustCo has been tapped to operate GuocoLand's 16,800 square foot co-working space at 20 Collyer Quay, which will take the start-up's portfolio to 15 centres in Singapore.
This comes as it is gearing up to break into new cities and countries across Asia next year such as Seoul, Melbourne, Sydney and Vietnam. It presently has a total of 23 centres across Singapore, Jakarta, Shanghai and Bangkok.
Slated to open in April next year, the new centre at 20 Collyer Quay will attract tenants such as large firms and Fortune 500 companies, expects Kong Wan Sing, founder of JustCo. Initial marketing efforts have yielded strong interest and pre-commitments from enterprise clients, he added.
Tricia Song, Head of Research:
According to Colliers International, flexible workspace stock in Singapore has grown to 2.7 million sq ft as at end 1H18, nearly tripling from 1 million sq ft as at end 2015. For 2018 as a whole, Colliers projected that co-working space would grow by 30-35%, or by around 670,000 sq ft. Other major co-working players in Singapore include IWG and WeWork.
In 2019, we also expect to see more activity within the "Flex and Core" leasing model, which will see more landlords as well as occupiers embrace the concept of combining traditional office leases with short-term lease tenures in flexible workspace centres.
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