Singapore, Vietnam real estate markets to recover quickest from Covid-19 pandemic
The property markets in Singapore and Vietnam are likely to emerge faster than their Southeast Asian peers from the economic slump brought along by the Covid-19 pandemic, according to international real estate consultancy Knight Frank.
Although the region will take time to gradually recover from the virus crisis and some challenges are here to stay for a longer period of time, there is some upside this year, with economic recovery expected to be more evident in the second half, Christine Li, head of research for Asia-Pacific at Knight Frank, told the South China Morning Post.
“Singapore’s properties have remained resilient through the pandemic with prices rising 13 per cent on average over the last two years to outperform the rest of the region,” said Christine Li, head of research for Asia-Pacific at the property consultancy.
Singapore home prices reach highest level in a decade
This is largely in line with data released by Singapore’s Urban Redevelopment Authority end-January, which showed that Singapore home prices rose to their highest level in more than a decade. Prices increased by 10.6 per cent in 2021, the highest level since 2010, when they increased by 17.6 per cent. In 2020, when the pandemic was in full force, prices only increased by 2.2 per cent. In the fourth quarter 2021, home prices in Singapore grew five per cent.
Office space in the financial hub is also likely to lead the rest of the region, with lease prices set to increase by ten per cent this year, according to property firm CBRE.
Meanwhile, Vietnam is also showing signs of a quicker recovery.
“Recovery momentum in Vietnam is encouraging. The coutnry’s residential market is gaining ground with foreign investors, with many new units bought by non-residents,” Knight Frank’s Li said.
Residential and industrial property markets in Vietnam show strength
Besides an uptick in housing demand, Vietnam’s logistics and industrial property markets have also performed well. As of the third quarter of 2021, average occupancy rates of industrial parks in five key cities and provinces in northern Vietnam reached 78.5 per cent, a 0.5 percentage point improvement from a year ago, according to CBRE.
In turn, Malaysia, the Philippines and Thailand are likely to keep facing challenges this year. Home prices in Metro Manila, Kuala Lumpur and Penang are still between three and seven per cent below pre-pandemic levels, while those in the Indonesian capital of Jakarta are largely flat, Li said.
“For Bangkok’s [apartment] market, buying sentiment is still downbeat… With the pandemic continuing in full force, uncertainties still cloud the outlook of Bangkok’s recovery from Covid-19, with homebuyers pulling back purchases,” she noted, adding that “it remains challenging for developers to stay positive, and many are delaying project launches by at least another six to nine months.”
[caption id="attachment_38184" align="alignleft" width="300"] The Landmark 81 tower in Ho Chi Minh City's Binh Thanh district overlooks the city's Vinhomes Central Park Residences, a highly sought-after neighbourhood[/caption] The property markets in Singapore and Vietnam are likely to emerge faster than their Southeast Asian peers from the economic slump brought along by the Covid-19 pandemic, according to international real estate consultancy Knight Frank. Although the region will take time to gradually recover from the virus crisis and some challenges are here to stay for a longer period of time, there is some upside this year, with economic recovery expected to be...
The property markets in Singapore and Vietnam are likely to emerge faster than their Southeast Asian peers from the economic slump brought along by the Covid-19 pandemic, according to international real estate consultancy Knight Frank.
Although the region will take time to gradually recover from the virus crisis and some challenges are here to stay for a longer period of time, there is some upside this year, with economic recovery expected to be more evident in the second half, Christine Li, head of research for Asia-Pacific at Knight Frank, told the South China Morning Post.
“Singapore’s properties have remained resilient through the pandemic with prices rising 13 per cent on average over the last two years to outperform the rest of the region,” said Christine Li, head of research for Asia-Pacific at the property consultancy.
Singapore home prices reach highest level in a decade
This is largely in line with data released by Singapore’s Urban Redevelopment Authority end-January, which showed that Singapore home prices rose to their highest level in more than a decade. Prices increased by 10.6 per cent in 2021, the highest level since 2010, when they increased by 17.6 per cent. In 2020, when the pandemic was in full force, prices only increased by 2.2 per cent. In the fourth quarter 2021, home prices in Singapore grew five per cent.
Office space in the financial hub is also likely to lead the rest of the region, with lease prices set to increase by ten per cent this year, according to property firm CBRE.
Meanwhile, Vietnam is also showing signs of a quicker recovery.
“Recovery momentum in Vietnam is encouraging. The coutnry’s residential market is gaining ground with foreign investors, with many new units bought by non-residents,” Knight Frank’s Li said.
Residential and industrial property markets in Vietnam show strength
Besides an uptick in housing demand, Vietnam’s logistics and industrial property markets have also performed well. As of the third quarter of 2021, average occupancy rates of industrial parks in five key cities and provinces in northern Vietnam reached 78.5 per cent, a 0.5 percentage point improvement from a year ago, according to CBRE.
In turn, Malaysia, the Philippines and Thailand are likely to keep facing challenges this year. Home prices in Metro Manila, Kuala Lumpur and Penang are still between three and seven per cent below pre-pandemic levels, while those in the Indonesian capital of Jakarta are largely flat, Li said.
“For Bangkok’s [apartment] market, buying sentiment is still downbeat… With the pandemic continuing in full force, uncertainties still cloud the outlook of Bangkok’s recovery from Covid-19, with homebuyers pulling back purchases,” she noted, adding that “it remains challenging for developers to stay positive, and many are delaying project launches by at least another six to nine months.”
