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The republic fell from 17th place in 2015 to 75th place in 2016 on JLL’s City Momentum Index (CMI), an index that tracks cities’ short-term socio-economic and real estate momentum, in combination with measures of whether they have the longer-term foundations for success.
From being one of the top rental performers globally in 2014, Singapore saw office rents drop by around 10 percent in 2015, with a further 10 to 20 percent decline forecast for 2016. Rents in the retail sector have also fallen.
While it is improving affordability, the sharp rental corrections have been the main contributor to the city’s poor real estate momentum scores, said JLL.
“Lower levels of real estate investment have also contributed to this poor score – despite Singapore being one of the most popular investment destinations globally,” it added.
Covering 120 major established and emerging business hubs across the world, the CMI highlights the top 20 cities where change is rapidly occurring.
The Asia Pacific region accounted for the biggest share of the top 20, with 11 cities on the list. These include Tokyo, Seoul, Shanghai and Sydney. Also included in the top 20 is Auckland.
According to JLL director of global research Jeremy Kelly, a key feature of this year’s top 20 cities in the index is the overwhelming dominance of innovation-rich cities.
“JLL has long emphasised that city momentum involves far more than just raw GDP growth – it is crucially about building the foundations of an innovation-oriented economy through technology, creating cutting-edge new businesses, attracting talent and nurturing vibrant inclusive communities,” he said.
In fact, China’s cities in the top 20 include those shifting into higher-value activities and building the foundations for new forms of economic activity in terms of infrastructure, connectivity and innovation. These include Beijing, Shenzhen and Shanghai.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories emailnikki@propertyguru.com.sg
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