Singapore Property and REITs: Jun-26 review: Affected by oil price volatility

Research evidence excerpt

Singapore Property and REITs: Jun-26 review: Affected by oil price volatility

ened its 124-room Millennium Premier Hotel New York Times Square on 1 Jun after an extensive renovation.

Management framed the relaunch as a milestone for MHR’s US portfolio and ongoing investment in key gateway cities

3-Jun Higher GLS bids and construction costs are lifting developers’ breakeven levels, pushing consultants to flag S$2,800 to S$3,000 psf as an increasingly likely launch

range for city-fringe sites coming to market in 2027 to 2028, even as OCR pricing is already nearing S$2,900 psf in some launches. Average residential land bids in

1H 2026 rose to S$1,397 psfppr, up about 13% YoY, reinforcing the upward pricing floor and encouraging more joint ventures that can further support aggressive

bidding. The primary market continues to set benchmarks that feed into resale pricing, but resale adjusts more slowly, leaving a still-elevated new versus resale gap

of about 45.6% after peaking in 2023. Demand resilience has been underpinned by strong launch take-up, balance sheets and lower rates, but affordability ceilings,

loan limits, potential labour market pressure from AI adoption, and thinner intergenerational support could test whether S$3,000 psf becomes a sustained norm

3-Jun Singapore’s PMI rose 0.3 points to 51 in May, its highest since Dec 2024 and the 10th straight month of expansion, as AI-driven demand continued to support

manufacturing. The electronics PMI also edged up 0.2 points to 51.9, extending growth to 12 months, but firms face rising input costs, slower supplier deliveries, and

supply chain strain linked to the Middle East conflict.

4-Jun CLAR is acquiring 5 Tuas Avenue 5 for S$133.9m, at a 1.5% discount to the S$136.0m valuation, with completion targeted in 2H26.