Singapore moves up six places in global resilient cities Index
Urban resilience is one of the key themes in the Urban Redevelopment Authority Master Plan 2020, he explained. Jeremy Lake, Savills Singapore’s managing director for investment sales, capital markets and investment sales, believes that in 2024 the city state will see a significant increase in the number of investment transactions as both sellers and buyers return to this market.
Singapore’s safe-haven position, political stability, and resilient economic system are attracting increased investor interest.
Singapore, which was ranked 12th in 2021, has now climbed six places to be the world’s 6th most resilient metropolis. Savills global index, an annual report that measures the resilience of cities around the globe, tracked the results. New York was ranked first for the third time in succession. Tokyo, London Seoul Los Angeles and Los Angeles were all close behind.
This Resilient Communities Index is published today (Monday, Mar 25). It measures the resilience and well-being of a community based on their ability to provide for the needs and successes of residents and workers in the context of economic and social changes, as well as environmental and technological ones.
Savills noted that this makes the cities attractive for investors and occupants.
Four core areas of analysis were conducted: economic strength, knowledge economy and technologies, corporate governance and ESG (environmental, social and business), and real-estate investment.
Savills says that Singapore has seen a rise in its popularity due to the number of people moving there and working.
The prime residential rents in the city rose by a staggering 42 percent between 2020 and 2023.
Meanwhile, real estate investment volumes remained stable. Savills noted, “This is not a small achievement in an environment of economic uncertainty. Singapore’s future is also well-positioned thanks to its competitive tech sector.
As an example, venture capital investment increased from US$8,2 million in 2021 up to US$9 billion in 2023. This was despite the overall global volume decreasing.
Alan Cheong is the executive director of Savills Singapore and its research and consultancy department. He believes that Singapore can improve even more in the coming years.
Savills concluded that economic fundamentals are closely related to the resilience of a particular city. “In turn real estate investment continues to focus on big cities, particularly those with a large and diverse economic base,” the company said.
Savills believes that the financial environment will improve in these cities and that real estate investment volumes will begin to increase in coming years. But with climate change and ESG factors on the rise, economic growth that is at the cost of everything else will be increasingly challenged.”
