On the back of the COVID-19 fallout, real estate investment volume in Singapore for Q2 2020 came to S$2.129 bn, a 23.2% drop from the previous quarter.
The impact of COVID-19 weighed heavily on Singapore’s economy. Across an array of industries, businesses are tightening their belts and cost containment continued to be a key focus.
Amid the ongoing economic uncertainties, the business park market displayed signs of resilience. The value proposition of business parks for occupiers still remains.
Leasing volume slowed down significantly in Q2 2020, negatively impacting new to market and expansion activities. The number of closures escalated in Q2 2020, mainly confined to the F&B and entertainment sectors.
Q2 2020 saw the months of April and May undergone a “circuit breaker” period where no showflats were allowed to open, contributing to a lower showing for the quarter.
Leasing activity picked up towards the end of the quarter especially for prime logistics, which lent support to overall warehouse rents. Meanwhile, the factory market remains two-tier, with market conditions continuing to weigh on rents.