As the global economy looks set for a rebound after COVID-19, all eyes are on the recovery in the US. With the passing of the $1.9 trillion COVID-19 relief package, the economy is set to go into overdrive. As demand for products and services strengthens, there are questions about the direction of inflation and interest rates in the US and Asia Pacific. Against this economic backdrop, we will look at implications for real estate in Singapore and ask what opportunities lie ahead.

1. Biding your time
President Joe Biden's first 100 days
and the impact on Singapore's real
estate market
24 May 2021
Andrew Haskins
Executive Director | Research | Asia

2. US to see strongest real GDP growth this year since 1951
Thank you, Mr President!
2
Colliers
Source for GDP data: Oxford Economics
1951 2021
7.7%
8.0%

3. Jobs growth to surge, inflation rising
US overheating may now be a risk
Colliers 3
Source: Oxford Economics
Source: Oxford Economics/Haver Analytics
Annual rate for core
CPI inflation now
3.0%,
the highest since June 1996
After brief April setback,
US should see strongest job
creation in history in 2021
US: Job creation
by year since 1946
US: Consumer prices
Source: Oxford Economics/Haver Analytics

4. Short-term rates now stable, long-term rates rising
Turn in interest rates in sight
4
Colliers
Source: CME, Federal Reserve, Oxford Economics
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Dec.
2016
Dec.
2017
Dec.
2018
Dec.
2019
Dec.
2020
Dec.
2021
Dec.
2022
Dec.
2023
Dec.
2024
Fed's "dot plot" (March 2021)
Oxford Economics (May 2021)
Market Implied (Dec-16-2020)
Market Implied (May 7 2021)
%
Source: CME/Federal Reserve/Oxford Economics
US: Federal funds rate expectations
Source: Bloomberg
0.51%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2015 2016 2017 2018 2019 2020 2021
Fed Funds rate set to rise by early 2023 Forty year bull market in US bonds may already have ended
US: 10-Year Bond yield (2015-May 2021)
1.66%
US: Federal Funds rate expectations

5. China alone can pull APAC out of recession
Does the US matter for APAC?
5
Colliers
Proportion of global economy represented by major economic zones (PPP basis)
Source : Oxford Economics
SARS GFC COVID-19
20%
18%
16%
8%
11%
19%
7%
6%
4%
17%
15%
11%
2003 2008 2020
United States China Japan Eurozone
On a PPP basis,
China accounts for
19% of the
ob o omy…
… d fo
47% of the
economy of APAC

6. Yields and capital values as of Q4 2020
6
Colliers
Singapore offers good value for investors
Logistics
Initial
Yield (%)
Office
Initial
Yield (%)
5.4%
5.1%
3.8%
3.2% 3.1% 3.0%
2.3%
Shanghai Beijing Singapore Tokyo Melbourne Sydney Hong Kong
SAR
6.0% 5.3%
5.1%
4.0%
3.8% 3.7%
3.3%
Singapore Shanghai Beijing Melbourne Tokyo Sydney Hong Kong
SAR
Capital Value per sq metre
(prime grade offices in CBDs)
0 20,000 40,000 60,000
NY Manhattan
Sydney CBD
Singapore CBD
LDN West End
TKY Marunouchi
HK Central
Note. Yields are calculated using net effective rent.
Source: Colliers

7. Summary of prime office rents in key cities
(USD, Q4 2020)
Rents are rising for occupiers…
Colliers 7
Source: Colliers
Sydney
CBD
$525
Melbourne
CBD
$1,270
Tokyo Hong Kong
SAR
$1,039
Singapore
$935
Beijing
$922
Shanghai
$353
$611
Rents shown are net effective rents on an NFA basis per sq metre per year.
Rents for Tokyo are for the five central wards.
Estimated average
prime rent growth
p.a. over 2020-2025
Tokyo Singapore
-4.0%
>3.0%
11.2
9.8 10.0 9.9
8.8 8.7
0
2
4
6
8
10
12
0
1
2
3
4
5
6
7
8
9
Raffles
Place/New
Downtown
(Premium)
Raffles
Place/New
Downtown
Shenton
Way/Tanjong
Pagar
City Hall Beach
Road/Bugis
Orchard
Vacancy Rent
Source: Colliers
Vacancy
(%)
Rents
(SGD/sq ft NLA/ month)
Singapore: Q1 2021 Grade A Office vacancy and rents
Source: Colliers
Singapore rents and vacancy

8. Singapore accounts for 46% of Asia regional HQs (59% for tech MNCs)
Real Estate Advisory Services for Occupiers 8
…but Singapore is still a location of choice
Orchard Road
Beach Road/
Bugis
Raffles Place/
New Downtown
City Hall
Shenton Way/
Tanjong Pagar
Plus Apple, Google,
IBM, Cisco, SAP,
Oracle, Lenovo,
So y…
outside the CBD
Strengths of Singapore
• 50% of wo d’ pop o w h
7 hour flight
• 640mn people in SE Asia with 50%
classified as middle-class by 2030
• Among top 5 cities globally for
competitiveness and innovation
• Has implemented free trade and
economic partnership agreements
with countries covering
>60% of global GDP

9. Hyderabad
Chennai
Kuala Lumpur
Hanoi
Tokyo
Beijing
Chengdu Shanghai
Manila
Singapore
Guangzhou
Taipei
Mumbai
Delhi NCR
Seoul
Hong Kong
Shenzhen
Bangkok
Sydney
Melbourne
Bengaluru
Ho Chi Minh City
Jakarta
Pune
Cumulative Regional Grade A
Office Leasing Demand
(sq metres)
Colliers 9
15-18%
20-25%
Chinese Technology Occupiers
Asian Technology Occupiers 2020
2.3mn
2021
6.5mn
2022
11.4mn
2023
16.6mn
2024
21.6mn
2025
26.4mn
Technology sector to drive APAC office leasing demand over next five years
Singapore one of APAC’s top four tech centres
Source: Colliers

10. Colliers 10
37%
Hanoi
47%
Manila
56%
Jakarta
100%
Singapore
51%
Bangkok
77%
Malaysia
Source: The Future of FinTech in South East Asia, Finch Capital, MDI Ventures, dealroom.co
% of urban
population connected
Capital city
Expanding internet use in SE Asia one of many factors driving demand
Fintech a key opportunity for Singapore
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2019 2020 2021 2022 2023 2024 2025
Potential
300,000 to 500,000 sq ft
new office demand
Source: PwC, Colliers
570mn people and 360mn internet users in six Southeast Asia Countries
22mn people joining the mobile age every year

11. Sustainability
Colliers 11
Timing of Countries’ Net Zero Emissions Targets
Source: World Resources Institute
China under President Xi has pledged
to achieve net zero emissions by 2060
Under Biden, the US will rejoin the
Paris climate accord. This sets 2050
as a deadline for the US to achieve
net zero greenhouse gas emissions
Owners and occupiers to focus on sustainability across APAC
Under the Singapore
Green Building Masterplan,
Singapore aims to achieve:
1) 80% of buildings to be
green by 2030
2) 80% of new developments
by GFA to be Super Low
Energy (SLE) buildings
from 2030
3) 80% improvement in
energy efficiency for best-
in-class green buildings
by 2030

12. About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising
professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider
ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion
of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers
or LinkedIn.
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Primary Authors:
Andrew Haskins
Executive Director | Research | Asia
+852 2822 0511
Andrew.Haskins@colliers.com
Rakesh Kunhiraman
Head of Occupier Research |
Research | Asia
+65 6531 8569
Rakesh.Kunhiraman@colliers.com
Nicholas Wilson
Head of Investor & Developer Research |
Research | Asia
+65 6531 8568
Nicholas.Wilson@colliers.com
Nancy Wong
Manager | Research| Asia
+852 2822 0500
Nancy.Y.Wong@colliers.com
Juliana Law
Analyst | Research| Asia
+852 2822 0583
Juliana.Law@colliers.com