Singapore economy to rebound to pre-pandemic levels by Q4

Singapore economy to rebound to pre-pandemic levels by Q4
Singapore economy to rebound to pre-pandemic levels by Q4

Singapore’s economy is expected to recover to pre-COVID-19 levels by Q4 2021 and will be one of the key markets in growth in the Asia Pacific region. 

With its economy forecasted to rebound to pre-COVID-19 levels by the fourth quarter of 2021, Singapore is expected to be one of the key markets leading growth within Asia Pacific – with growth of 4.5% or more, revealed Cushman & Wakefield.

“With ample dry powder in the region, flows into real estate are expected to resume as confidence in the broader recovery strengthens globally. Liquidity is expected to accelerate towards the end of the year as the office sector bottoms out, joining already strong conditions for logistics and residential assets,” said Shaun Poh, Executive Director of Capital Markets at Cushman & Wakefield.

In its latest The Signal Report: Investor’s Quarterly Guide to 2021, Cushman & Wakefield noted that the city-state’s logistics market is buoyed by shifting consumer preferences and accelerated e-commerce growth.

Demand for industrial real estate was boosted on the production side by manufacturers looking to build safety stock and supported by producers looking to shorten supply chains. This is evidenced by the broad hike in rents of local industrial properties during Q4 2020.

Home values in Singapore generally increased in 2020, while rental rate growth softened.

“While private residential rents fell by 0.6% year-on-year in 2020, prices continued to trend higher by 2.2% year-on-year over the same period. Developers are looking to acquire land and are keenly watching for opportunities in the en bloc market,” said Shaun.

Suggested read: Singapore Property Market Outlook 2021 Overview

Cushman & Wakefield said real estate investors adopted a wait-and-see approach in 2020, resulting in a 29% drop in total investment volumes, excluding development sites.

However, it expects total real estate investment volumes in Asia Pacific to bounce back this year to around US$165 billion, which is around 90% of the 2019 level.

“This rebound in investment activity in the region is supported by greater investor confidence as Asia Pacific leads the economic recovery across the world. The region is also riding on the positive momentum off the back of a surge in investments in the last quarter of 2020,” said Cushman & Wakefield.

Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email:

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