八百里急报：Silly Petty Minded Sinki has frighten away Good Talents and sabo all - Now SG Rent is Falling Down?

[k1976]

Why Singapore rents are falling​

In H1 2024, rents fell by 4.5% HoH and 5.6% YoY.
Singapore has fallen to the bottom of the rankings of cities with the biggest prime rental value changes, and experts attribute this to rents in Singapore being "out of sync with global trends."
"Starting in 2022, when markets around the world saw rents continue to decline, Singapore experienced a very sharp run-up in prices. In 2024, rents are now correcting in an orderly fashion as more supply comes online," said Alan Cheong, executive director of Research & Consultancy at Savills Singapore.
According to Savills Prime Residential Index: World Cities – Rents and Yields, Singapore's rents have fallen by 4.5% HoH and 5.6% YoY, placing it at the lowest position in the index.

Savills
The report also attributed the decline to the slowdown in leasing demand in the prime districts and a moderation in economic growth and employment expansion.
Cheong believes that Singapore "may see the rental market starting to stabilise by the end of the year as the quarter-on-quarter rental decline appears to be slowing."
Globally, the cities which recorded the biggest prime rental value changes were Dubai (12.1%), Bangkok (9%) and Lisbon (7.5%).

 

[k1976]

Singapore's capital value growth weakens amidst new launch scarcity​

It ranked 23rd globally for strongest residential capital growth.
Singapore ranked 23rd globally among cities with the strongest capital value growth for residential properties.
According to Savills, Singapore's decline in the Prime Residential Index: World Cities - Capital Values is negligible, as prices have remained largely unchanged.

Savills
Alan Cheong, executive director of Research & Consultancy at Savills Singapore, emphasised that high-end private residential property prices are trending downward due to a lack of new launches, which previously set benchmark prices to boost the market.
The substantial Additional Buyers Stamp Duty (ABSD) also kept non-permanent resident foreigners away from the market.
In Q2, however, Cheong said Singapore saw more foreign participation in the market.
“Although the worst may be behind us, it may still take some quarters for the increasing foreign content to make a significant positive influence on the market," Cheong said.
"The sub-segment of foreign demand to watch is the Permanent Residency (PR) class. Although PRs pay ABSD, it is only 5% and significantly lower than the 60% levied on non-PRs. Therefore, we expect more PRs committing to buying private residential properties in the coming quarters," Cheong added.
Meahwuo,e George Tan, managing director of Livethere Residential, Savills Singapore, expects sales to increase following the supply ramp-up in H2 2024.
“Interest rates may also drop. With that, prices may moderate and we can anticipate some growth in the market," Tan added.

 

[k1976]

Johor Bahru-Singapore RTS link sparks concerns over retail value leakage​

The RTS Link threatens Singapore's retail market.
The Johor Bahru-Singapore Rapid Transit System (RTS) Link, set to enhance connectivity between the two cities, poses a potential 5.4% retail value leakage, impacting Singapore's retail sales by an estimated 3% to 4%.
This development prompts concerns among Singaporean retailers about increased consumer spending in Johor Bahru, driven by favourable currency exchange rates and the rising cost of living in Singapore.
DBS has highlighted that the affordability of goods and services has increased in Johor Bahru due to the weakened Malaysian Ringgit (MYR) and Goods and Services Tax (GST) hikes in Singapore. The ease of travel enabled by the RTS Link may prompt Singaporeans to “stretch the dollar” by shopping across the border.
Januel Koh, a Digital Marketing and Branding Lecturer at Singapore Polytechnic's School of Business, identifies key sectors likely to be affected. “Singaporeans love to go to Johor to buy groceries for apparel, fashion, and technological products," he noted. Additionally, services such as haircuts, spa treatments, and massages are popular due to the cost savings of 30% to 60% in Johor Bahru.
Mário Braz de Matos, Co-founder and Managing Partner of Flying Fish Lab, stated, “I think the catchment area is going to be a key consideration.” Businesses located further from the RTS Link may experience less impact, while sectors with comparable offerings on both sides of the border may see significant shifts in consumer behaviour due to price differences.

 

[k1976]

Competitive strategies for singaporean retailers

As Singaporean retailers face these challenges, they must innovate and adapt to remain competitive. de Matos emphasised the importance of focusing on value rather than price. “Singapore is not a cost country; it’s a value country,” he said. Retailers need to rethink their value propositions and consider offering unique experiences or products that justify the higher prices.

Januel Koh concurred that retailers should focus on meeting consumer expectations and providing added value to differentiate themselves from Johor Bahru's offerings.

The RTS Link is expected to alter Singaporean consumer shopping habits, with more individuals seeking opportunities to maximise value through cross-border purchases. Koh observed a shift back to offline shopping post-COVID, with consumers exploring various platforms for the best value deals.

He highlighted the importance of omnichannel strategies, emphasising the role of memberships and personalised experiences in attracting and retaining customers. “When this membership is in place, that’s when the magic happens,” Koh stated.

“We’re not going to prevent people from going over to Johor. We have to live with it,” de Matos advised. He suggested focusing on attracting Johor Bahru residents to Singapore, balancing the flow of shoppers between the two cities.

 

[k1976]

Government support and policy

Addressing the impact of the RTS Link on the retail sector requires targeted government support. de Matos called for policies that enhance business value propositions and provide training and resources for retailers to reposition and transform.

He also praises Singapore’s effective monitoring of business performance, suggesting the use of GST data to gauge retail health and inform policy decisions.

As the RTS Link nears completion, Singaporean retailers face the dual challenge of retaining local customers and attracting cross-border shoppers. By focusing on value, experience, and strategic adaptation, they can mitigate the potential impact and thrive in this evolving landscape.

 

[congo9]

Building a RTS link to Johor is the worst economic move Singapore had made. It's just making employment so much easier for the Malaysians. And we are not counting the low barrier of employment set about by Government of Singapore. Plus it facilitate smooth crossing into Malaysia for bother local and Singaporean. It also huge economic leakage and Singapore government keep talking about keeping money from Landsale to GIC and the money to be invested by GIC . In the end, the real costs hit us making Singapore super expensive.

Nowadays the government department is so disjointed in decision making. Immigration do not talk to MOM and both don't talk to Ministry of National development and Ministry of trade and industry.

 

[k1976]

 

[k1976]