A newly launched global property index covering commercial real estate sees the Singapore corporate market as more attractive than those in Europe
. This recent company index sees commercial real estate in Singapore promising better returns than that in Europe. The Fair Value Index, as it is called, is compiled by property consultancy DTZ and offers investors an insight into the relative attractiveness of global markets over a five-year investment period.
The Asia-Pacific region scored 67 on the index in the second quarter, outstripping the global score of 62 and beating Europe's 49 but lagging behind the US score of 89. A score above 80 indicates a hot market as expected returns exceed risk-adjusted required returns. Anything below 50 means a market is cold.
Singapore, traditionally referred to as a volatile market is to record strong rental growth, particularly on the office sector, over the next 5 years as the country rebounds from sharp fall in rent rates last 2009. The economic recovery since then has improved liquidity and demand despite a relative pause in investment from other neighboring countries. This will result in strong capital growth and boosting returns for Singapore branch office investments.
This is primarily due to the attractive pricing in many of Singapore corporate office markets are seeing a steady increase of buyers who are encourage by positive development above. And as employment levels are improved and prime corporate rents and incentives remain very competitive, it seems that Singapore is definitely one of the prime destinations to consider and setting up a company headquarters in Singapore will definitely be a move worth considering in growing your business in the Asia-Pacific region.