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Singapore cap rates remain flat in Q3

The gross yield of commercial properties in Singapore ranges from 3.00%-6.25%.

Singapore cap rates remained flat across sectors given the lack of sales evidence to support any movement,  Collier’s Q3 2023 APAC Cap Rates Report showed.

As of 3Q23, interest rate and inflation rates in Singapore were at 3.71% and 4.00%, respectively.

The report also said that increasing lending costs are putting pressure on many investors and owners. 

there are other investors with deep pockets who are taking advantage of this opportunity to acquire assets for long-term investment.

Colliers, however, said there are other investors with deep pockets who are acquiring assets for long-term investment.

According to the report, the gross yield of office properties can go as high as 3.50% and as low as 3.00%.

For retail properties, the lowest gross yield would be 4.25%, whilst the highest would be 4.75%. For industrial, the lowest gross yield would be 5.25%, whilst the highest would be 6.25%.

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