Office sector posts highest net balances in Q2 as retail slump persists

Prime retail posted the lowest net balance in both current and future periods.

The office sector recorded the highest positive current and future net balances for the second quarter (Q2) at 36% and 27%, respectively, according to the National University of Singapore's (NUS) Real Estate Sentiment Index.

“The office market performed better due to limited supply of new offices and better economic outlook,” according to comments from NUS’ survey respondents.

Other sectors that recorded positive current balances in Q2 were prime residential, industrial/logistics, and hotel/serviced apartment, each at 9%, and business park/hi-tech space at 5%.

Meanwhile, prime retail posted the sharpest negative current net balance of 23%, followed by suburban retail at 18%, and suburban residential at 14%—the latter declining from a positive 15% in the first quarter.

In terms of positive future net balances, hotel/serviced apartment led at 18%, followed by industrial/logistics at 9%. Business park/hi-tech space had a nil future net balance.

Prime retail recorded the lowest future net balance (-27%), followed by suburban retail (-18%) and prime residential (-14%).

Suburban residential had a negative future net balance of 5%—falling from a positive 15% in Q1.