Singapore
In Singapore,
Our general view is that the market is mature and stable, resulting in limited room to maneuver for big gains. Yields are compressed to 3% and less across most real estate sectors. Value-up and repositioning plays are few and risky. There is a general disconnect between buyers and sellers; buyers looking to get a steep discount on their purchases and sellers insisting that their properties are worth much more than the market.
In recent years,
We have identified Singapore shophouses as a niche and emerging asset class in which to capture alpha returns. Unique to Singapore and Southeast Asia, these very limited yet versatile heritage shophouses (approx. 6,500 according to URA) continue to be relevant in the era of skyscrapers and shopping malls – serving as homes, clan houses, hotels, shops, cafes, restaurants, etc.