SINGAPORE PROPERTY Commercial Redevelopment Fuels Luxury
Given the surge in Asia's property markets Singapore is experiencing a phenomenon with CBD (central business district) properties being converted into luxury residential back of continued demand.
In a growing urbanization of real estate older commercial properties which seen seen rents falling are now being redeveloped into upscale homes to tap into a ramped up market. As the city state continues to develop critical mass for project such as the Marina Bay Financial district, this creates vacancy rates in aging building which forces developers to shift business models.
While during the recent GFC (global financial crises) many institutional investors flocked to steady yield income investments and stabilized returns such as commercial; the property demand remains an increasingly attractive high profit proposition.
Despite warnings in Hong Kong, China and elsewhere of a new property bubble for now residential property remains the flavor of the moment.