Asian newcomers threaten to dethrone Singapore in real estate dominance

It may need ambitious projects to stay competitive.

The city-state makes up one-sixth of the ‘Big Six’ established world cities, but it may not stay in the top too long, as numerous cities are threatening to barge into the elite group.

According to a report by JLL, a number of cities are in the line to challenge the Big Six’s dominance, with Sydney and Seoul leading the charge. JLL adds that Shanghai and Beijing are also waiting to blossom, with the former already one of the world’s top 10 financial hubs.

Rosemary Feenan, director of global research programmes at JLL says in order to maintain its dominance, Singapore may need to execute bold and ambitious urban transformation projects to accommodate growth and stay globally competitive.

“Our research shows that a new world order of cities is evolving, with several emerging cities ready to break from the pack. In Asia in particular, there are strong challenges to the old order from agile higher-value emerging cities like Bangalore, Shenzhen and Guangzhou,” Feenan said.

Meanwhile, Singapore, along with rival Hong Kong, remain the most business-friendly cities in the world, possessing strong education, innovation and infrastructure credentials.

However, Asia is entering a new of era of city competition, as the rigid hierarchy breaks down as more cities ‘go global’.

“The increasingly globalised urban world is changing the geography of commercial real estate and is offering new opportunities and niches for cities outside the old order,” says the report.

“As emerging cities in Asia Pacific move to the next phase of their evolution, the real estate sector will play an increasingly important role in creating a ‘sense of place’ and making them more liveable and sustainable. This will have wide-ranging implications for citizens, governments, corporations and provide some great opportunities for investors,” said Alastair Hughes, Asia-Pacific CEO of JLL.