Singapore moves up to the sixth position in the Global Resilient Cities Index
In spite of a worldwide decline in volumes, the amount invested in venture capital grew from US$8.2 Billion in 2021, to US$9.4 Billion in 2023. Alan Cheong, executive director for research and consulting at Savills Singapore, believes that Singapore’s ranking will continue to rise in the coming decade. The Urban Redevelopment Authority Master Plan for 2025 includes urban resilience among its key themes.
Jeremy Lake is the managing director of Savills Singapore’s investment sales and capital market. He said that 2024 will see a rise in investment deals as both buyers & sellers return to Singapore. Singapore’s status as a safe haven, its political stability and its resilient economy will attract increased investor interest.
Savills stated that the correlation between economic fundamentals, and the resilience of cities is strong. Real estate investors, on the other hand, continue to concentrate their efforts on large cities with a strong and broad economic foundation, it stated. Savills predicts that the cities in question will see a shift in the year ahead as funding conditions improve, and investment in real estate begins to rebound. “However, as the impact of climate changes and other ESGs factors rise to the top of the agenda, economic development at the expense of all else is increasingly challenged.”
Singapore rose six places in just two years to the 6th most resilient city on earth. It was 12th in 2021. The annual global index of real estate consultancy Savills tracks the resilience in 490 cities worldwide. New York took the top spot in the world for the second year running. Tokyo, London Seoul and Los Angeles were next.
The Index of Resilient City was published on March 25th. It measures the city’s resilience based on the ability of the city to support residents’ well-being, and the success of their workers, in spite of the economic, social, technological, and environmental changes.
Savills stated that this makes these cities appealing to investors and residents. Four areas were considered: a city’s economic strength, its knowledge-based economy and technology, environmental, social and corporate (ESG), and real estate investment. Savills stated that Singapore’s growth was aided by the increasing number of people choosing to work and live in the city. Rents for prime residential properties rose by 42 per cent from 2021 to 2023 as the city switched from recording net outflows of new people.
Meanwhile, real estate investment volumes remained stable. Savills stated that this was no easy feat, given the global economic slowdown as well as the broader uncertainty in the economy. Singapore is well positioned for the future with a competitive tech industry.
