Companies are still evaluating their long-term real estate space requirements.
Office property activity may be revived as Chinese technology companies gain entry and expand in Singapore, according to OCBC.
The firm said Chinese technology entering Singapore market could alleviate some pressure from the consolidation of office spaces by companies amidst the work-from-home trend.
However, the current situation remains highly unlikely due to corporates still evaluating their long-term real estate needs.
Meanwhile, Singapore’s residential market continues to shine through its resilience.
The Urban Redevelopment Authority said prices of private residential properties rose by 2.2% in 2020 despite the 5.8% contraction in its real gross domestic product.
OCBC expects Singapore prices to rise between 2%-4% in 2021, underpinned by a steady recovery in the region, a recovering labour market, the low mortgage rate environment, potential return of foreign buyers and higher expected construction costs due to Covid-19, with some costs expected to be passed through in the form of higher prices.