Additionally, Champions Way Residences offers a wide range of high-end facilities, such as a swimming pool, gym, and barbecue pits. With its convenient location and luxurious amenities, Champions Way Residences is the perfect choice for those looking for a modern and comfortable living experience in Singapore.
Champions Way Residences, situated in a prime location, boasts easy access to various amenities such as retail centers, financial institutions, recreational hubs, and educational institutions. Furthermore, residents can conveniently commute to different parts of the city through the well-connected MRT and bus lines. Apart from its strategic location, Champions Way Residences offers a plethora of exclusive facilities like a sparkling swimming pool, fully-equipped gym, and inviting barbecue pits. An ideal abode for those seeking a sophisticated and lavish lifestyle in Singapore, look no further than Champions Way Residences for your dream home.
Singapore’s office property market ended 2023 on a subdued note, according to URA’s quarterly report released on Jan 25. The report showed a 5.9% q-o-q drop in commercial office prices for 4Q2023, reversing the 0.8% q-o-q uptick in 3Q2023. This marked a net decrease of 4.2% in office prices for the entire year.
JLL head of research and consultancy in Singapore, Tay Huey Ying, notes that they had observed weakening occupier demand as early as 2Q2023. She explains, “The downcast global and domestic economic outlook at the start of the year, coupled with the higher-for-longer interest rate environment, had kept occupiers wary and saw many corporates shelving expansion and relocation plans to manage costs.”
The steep decline in office property prices is not surprising, says Tay as “the immense asset repricing pressure that has built up arising from the negative yield spread over borrowing costs for most office assets in the prolonged elevated interest rate environment.”
Meanwhile, CBRE head of research for Singapore and Southeast Asia, Tricia Song, notes that office rents in the Central Region only saw a 0.3% increase in 4Q2023, the lowest quarterly growth for the year. This follows a 4.9% q-o-q increase in 3Q2023. However, office rents for the entire year saw a 13.1% increase, faster than the 11.7% growth in 2022.
Song explains that given the higher capital expenditure and interest rates, some occupiers were renewing existing leases at higher reversionary rents instead of relocating. She also notes that space availability remains limited due to a shortage in supply. However, selected premium office spaces in the Core CBD saw rental escalation as they were highly contested by competing tenants.
Additionally, shadow spaces in prime areas like Marina Bay and Raffles Place were also in high demand among occupiers looking for high-quality, fitted-out office spaces. This further contributed to the shortage as some tech occupiers decided to retain their office premises, taking shadow spaces off the market.
Based on URA data, the market saw a positive net absorption of 0.1 million sq ft in 4Q2023, following an additional 0.25 million sq ft absorption in 3Q2023. The island-wide vacancy rate was 9.9% in 4Q2023, slightly down from 10% in 3Q2023.
Meanwhile, Core CBD (Grade A) rents grew by 1.7% y-o-y, moderating from the 8.3% rental growth in 2022, according to CBRE Research. Song notes that the market may face a slower 1H2024 with an above historical average completion pipeline and potential secondary spaces, which could temporarily increase the availability of spaces.
(Source: CBRE Singapore)
Soft occupier sentiment is expected to linger as shown by lay-offs announced at the start of the year in giant companies like Lazada, Google, YouTube, Amazon, Tencent Holdings’ Riot Games, and even Unilever. However, Tay points out that experience has shown demand for office space to rebound quickly in improved economic conditions.
Furthermore, Singapore’s economy has shown signs of a nascent recovery, with advanced estimates by the Ministry of Trade showing a 2.8% y-o-y growth in 4Q2023 GDP, up from 1.0% y-o-y in 3Q2023. Tay predicts that this recovery could continue into 1H2024, lifting business confidence and unleashing pent-up demand in 2H2024. This could lead to occupiers restarting new lease negotiations, potentially causing office rents to firm and trend upwards in 2H2024.
With interest rates and inflationary pressures easing, CBRE’s Song expects sentiment to pick up in 2H2024. She also predicts that the flight-to-quality and flight-to-green trends will continue, leading to moderate growth of 2% to 3% in Core CBD (Grade A) rents in 2024.
Investors who have been waiting on the sidelines are starting to re-enter the market following the end of the Fed rate hike cycle. The successful sale of VisionCrest Commercial in Orchard to a consortium comprising TE Capital Partners, LaSalle Investment, and Metro Holdings in November 2023 could pave the way for more office deals and support upside in asset prices by 2H2024.
(Caption: VisionCrest Commercial was jointly acquired by Metro, TE Capital, and LaSalle Investment for about $450 million. Credit: Samuel Isaac Chua / EdgeProp Singapore)
Amidst the current market conditions, it is clear that the Champions Way Residences is set to stand out as a top residential development in the heart of Singapore’s bustling business district. With its strategic location, top-quality specifications, and high demand for premium office spaces, this development is a prime investment opportunity for both investors and businesses alike. Don’t miss your chance to be a part of the Champions Way Residences and secure your future in Singapore’s thriving property market.