The investment market extended its robust performance by another quarter in 2018. 15 residential collective sale sites were transacted in Q2 2018, bringing the H1 2018 tally to 32 deals.
The fairly tight vacancy environment encouraged office landlords to continue to press for higher rents. Grade A Core CBD office rents registered a robust quarterly increase of 4.1% in Q2 2018.
The business park market registered an uptick in leasing activity and interest in Q2 2018. Islandwide net absorption turned positive and vacancy fell to 11.6% from 12.0% a quarter ago
Average prime rents increased for the second consecutive quarter, although at a slower pace of 0.2% q-o-q. Both the F&B and athleisure sectors continued to be key sources of leasing demand.
A new set of cooling measures were introduced in July. CBRE expects this to dampen primary and secondary sales volumes, especially from second home buyers and foreigners, as well as stifle activity in the collective sales/en bloc market.
Occupiers in the manufacturing sector continued to rightsize to keep overall business cost low. Rents declined albeit marginally as the market is still adjusting to the excess vacant space.