Trends in the workplace will be dominated by productivity, technology, and sustainability in 2023

, ,

Marina View Residences showflat

According to the global workspace firm IWG IWG, the world of business is close to a significant at which over half of the professionals in the world adopt a hybrid work model.

In its most recent report 2023 Trends Forecast of the future of Work, IWG says that the shift in workplace culture could occur in over the course of five years. If it happens it will mean that the percentage of professionals who work out of the same place will fall into the minority for the first time in history.

“Hybrid working is the most popular option for millions of people in which they split their working time between their company’s headquarters, local flexible workspace, and their homes,” says Mark Dixon IWG’s CEO Mark Dixon. IWG.

Marina View Residences showflat is along Union Street and Shenton Way, putting the future residents at a stone’s throw distance from the Shenton MRT station that links to the Thomson East-Coast Line.

This way of balancing multiple workplaces boosts productivity of companies and provides a sustainable method of working, according to Dixon. “It is apparent that more changes are on their road, as our daily lives are affected by technological advances and fresh concepts in areas like sustainability technology, recruitment, and efficiency.”

Future trends
One of the trends forecast according to IWG is a major change in mental shift in corporate thinking as businesses are more focused on the outcomes rather than counting the amount of hours that employees are working in the week. “Productivity is increasingly a key concern for businesses, especially during turbulent economy,” states IWG.

A growing trend is the work week that is four days long of which is often discussed but not always applied corporate rule.

According to IWG the coming year will see more businesses adopt the four-day-week model but with the condition that they’re confident it won’t cause an overall decrease in productivity. The surveys conducted of IWG also suggest that employees who are seeking improved flexibility in their work and a better life balance are more likely to adopt the model too.

Generation Z’s presence Gen Z workers will help to speed up this trend since they comprise 55% of Gen Z workers surveyed by IWG claim that they are expecting the work schedule of four days to become the norm over the coming years, according to the report. Gen Z refers to the generation born between the end of the 1990s and the early 2010s.

But companies shouldn’t think of this as a method to cut wages by five percent according to IWG. The workplace trials that are conducted for the four-day work week typically use a 100:80/100 ratiowhich means that you will receive 100% of the salary for the first 80% percent of time with a promise to keep 100% productivity.

Virtual workspaces
Technology will continue to influence the future of workplace trends thanks to advances with the field of virtual reality (VR) as well as the use in artificial intelligence (AI) according to IWG. The potential of virtual workspaces has led companies like Meta as well as Microsoft to introduce various work tools that can be used in VR as well as some businesses are investing in the creation of their own virtual workspaces and real properties.

This means that the notion to work anywhere in the globe is becoming an option for more and more workers.

One of the biggest companies that offer flexible workspaces across worldwide, IWG points to its 3500 locations spread across 120 countries as a way for workers on the move to join in and get work done.

“It is a good idea for people who would like to explore all over the globe, while working in the same way and with as much ease as they previously worked at home, in an office near home or in a central headquarters,” says Dixon.

The city of Singapore, IWG has 22 sites. It has put up the four flexible brands of IWG’s workspace in Singapore: Regus, Spaces, Signature by Regus and the luxurious No18. Its latest location is a 10,328 square feet Regus center in the Hiap Hoe Building in Balestier’s Zhongshan Park.

The technology is being utilized to assist employers and landlords better comprehend how spaces are used. “Companies are collecting data from multiple sources, including the productivity of employees and environmental data, such as the levels of humidity, heat, noise and power usage , to help shape the workplace of the future and minimizing the environmental impact” Dixon adds. Dixon.

‘Green leases’
The increased awareness of their impact on the environment is due to the fact that companies are putting sustainability at the forefront of their corporate strategy According to IWG. It claims there is a growing trend that property owners are investing in upgrading their buildings and facilities to include the most sustainable features. Additionally increasing numbers of corporate tenants are looking to sign “green leases” which permit both the occupier and the owner to cooperate to create buildings that are more green and less polluting to the environment.

The typical provisions of the “green lease” include issues like carbon emissions and conformity with local regulations for energy efficiency and waste reduction strategies, as well as green transport strategies.

The focus on sustainability fits to the emergence in hybrid working. On one hand businesses are reducing their real estate portfolios for corporate use and concentrate on top-quality green workspaces and buildings. However the reduction in the amount of employees who commute daily helps to create an environment that is cleaner and more sustainable.

In its report IWG draws on research from Deepki, an property ESG data intelligence company, which concluded that the most green properties within Europe benefit from increased asset value for real estate agents in commercial properties. This benefit generally is an increase of 16% or 28% rise in property value. The reason for this is the increased will of tenants to pay higher rent for an energy efficient building.

Additionally, research conducted by the global real estate consulting firm Cushman & Wakefield indicates that Leed-certified Class-A office spaces generate an increase in psf that is 25.3% compared to non-certified buildings. Leed (Leadership in Energy and Environmental Design) is the most popular eco-friendly building certification system throughout the world. In Singapore it is it is the Green Mark certification is a similar green building system designed for buildings with the tropical climate.

Great Lease Resignation
All of these contribute to a phenomenon known as “Great Lease Resignation” A term that was coined by Dixon. It is a reference to corporate tenants refusing traditional leases for office space to go with more flexible leases.

The trend is likely to increase as leases are due to expire and businesses seek to profit from the savings that come with hybrid work. The shift to hybrid work can help in boosting retention of talent and attract more employees particularly for the emerging generation that is Gen Z workers.

However this also means that time spent at the office is more valuable according to IWG. The report states that “connecting and working together in person is an important component of the equation that is hybrid. However, it should be done in a planned manner. Simply announcing anchor days won’t make sense. Team days have to be planned and serve clearly defined goals. This is also true regarding meetings”.

Dixon states: “The most successful companies are now focusing on how meetings function. It’s no longer sufficient to set up a meeting then attempt to do it on the fly. If you want people to put in the effort to meet at the office it’s crucial that the time they spend there is productively.”

Future of Work will continue to be guided by a desire to improve the experience of employees at work by utilizing new technologies to improve efficiency and increase productivity, according to IWG. An increased awareness of well-being and sustainability is also a major factor in discussions about what the workplace of the future will look like.

/1 Comment/by

Chinese purchasers will gradually expand in the Singapore residential market in 2023

, ,

Marina View Residences location

In Singapore, the property market was abuzz after there was a buzz when the Chinese government announced that it would end its strict travel restrictions to international destinations and quarantine-related rules for pandemics starting January 8. It is expected for Chinese property purchasers will be returning to Singapore in large numbers to invest into real estate. But, a study by real estate agent Huttons Asia shows that the rise in Chinese property investors may be slower than originally expected.

Marina View Residences location is earmarked for residential and hotel use. The 0.78 ha or 84,000 sq ft site enjoys a maximum GFA of 1.09 million sqft.

After the reopening and opening of borders and the removal of restrictions on quarantines in China travel and tourism agencies have seen an increase in inquiries from Chinese travellers. International travel is expected to increase in the coming Lunar New Year festive period that officially begins on the 22nd of January. Some of the most sought-after destinations within Asia Pacific include Asia Pacific region for Chinese travelers are Thailand, South Korea, Singapore, Malaysia and Australia.

However, Huttons Asia says the economy is less favorable since the global interest rates continue to increase. Singapore’s headline inflation rate has risen by around 6.7% y-o-y as of November 2022. property prices have also risen in the range of 8.4% y-o-y for 2022 and the 3 month Sora price was 3.0019% as of Jan 9. Sora is the term used to describe Sora is Singapore Overnight Rate Average, the benchmark rate for interest rates.

The buying mood of foreign buyers, which includes those coming from China is expected to remain cautious due to economic uncertainty and an ABSD of “prohibitive” 30% ABSD that will likely limit global demand for foreign purchases this year, according to Huttons.

The data collected by the company indicates that Chinese buyers are making home property purchase in Singapore were at 1,637 in 2011. The number dropped by 62.2% y-o-y to 618 units sold in 2012 because the government imposed an additional buyer’s stamp tax (ABSD) that was 10% for international buyers, as part of property cooling measures that were introduced in December 2011 to reduce the demand from foreign buyers. The subsequent property cooling measures increased overseas purchasers’ ABSD by 15% in 2013 to 20% at the time of 2013 and increased to 20% in 2018. In 2021 the ABSD increased by 30%.

This stamp duty on transactions is not preventing some rich Chinese purchasers from investing in high-end Singapore housing properties. As of the month June 20, EdgeProp Singaporereported that an unknown Chinese buyer had purchased 20 units at the newly constructed luxurious apartment Canninghill Piers at Clarke Quay. The entire deal is worth over $85 million which is about $2,773 per sq ft and the units comprise mostly three- and four-bedroom units spread across several stacks.

In all, 227 new non-residential residential and the resale of properties within Singapore were bought in 2022 by Chinese customers in 2022. “Singapore is known for being a safest haven… that is popular with investors. There is a lot of interest from Chinese companies to establish business within Singapore,” says the Huttons report.

Based on a study of transaction records from Huttons the top three projects favored by foreign buyers 2022 include Canninghill Piers (51 units sold), Riviere at Jiak Kim Street (49 units sold) of transaction data by Huttons, the top three projects are Riviere at Jiak Kim the Avenir located at River Valley Close (42 units sold). The list also includes projects such as Perfect Ten at Bukit Timah Road Irwell Hill Residences located at Irwell Bank Road, One Pearl Bank at Pearl Bank Road and Pullman Residences Newton at Dunearn Road

/1 Comment/by

In 2023, CDL will be ranked as the leading real estate company for sustainability

, , ,

Marina View Residences by IOI Properties

City Developments Limited (CDL) was ranked 28th in 2023’s Global 100 ranking, maintaining its status as the top-ranked real estate company in the world and also the top-performing Singapore company.

Marina View Residences by IOI Properties emerged as the winner after submitting the only bid amounting to $1.15b equivalent to $1,378.5 psf.

The Global 100, compiled annually by the Toronto-based media and investment analysis company Corporate Knights, ranks the top companies in the world that are sustainable. This year’s list includes more than 6,700 companies earning more than $1 billion ($1.33 billion) in revenue were assessed by a series of key performance indicators, which include the management of resources, employee management and finance management, sustainable revenues, sustainable investment as well as the performance of their suppliers.

“CDL is honored to have been included on the Global 100 Most Sustainable Corporations for the 14th year in a row,” remarks Sherman Kwek, CDL group CEO, in a press announcement. “As the world moves towards a net-zero goal, CDL will continue to actively contribute to this global goal which is a sustainable journey that we began over two decades back.”

CapitaLand also made it onto The Global 100, ranking 56th on the list, an increase of 19 positions from the previous year’s position. The company has been on its way onto the Global 100 list for 11 consecutive years. “CLI’s regular inclusion in prestigious indexes like The Global 100, Dow Jones Sustainability Indices, and GRESB is a testament to our leadership in sustainability globally in the field of real estate,” Vinamra Srivastava, Chief Sustainability Officer at CLI.

/1 Comment/by

In 1H2023, the investment market will continue to be in a price-discovery mode

, , ,

Marina View Residences new launch

Investment sales dropped 10.8% q-o-q to $5 billion in 4Q2022, as rising borrowing costs and uncertainty about macroeconomics dampened business, according to research conducted by Colliers. The consultancy also says that the total amount of investments in 2022 was $29.1 billion, which is an 2.8% increase y-o-y, supported by a robust early part in the calendar year.

Marina View Residences new launch is earmarked for residential and hotel use.

Despite the slowdown in 4Q2022, this quarter saw several large transactions occur. This includes the sale of Jurong Point and Swing By @Thomson Plaza by Mercatus Co-operative for $2.161 billion as well as the sale of 50% share in Lazada One by ARA Asset Management for $361.49 million in addition to a number of private residential land sales.

The divestment undertaken by Mercatus helped boost commercial sales in the 4Q2022 as the segment recorded growth of 87.7% q-o-q surge to $2.8 billion. In the entire year, commercial sales increased 78.7% y-o-y to $11.4 billion.

Sales of residential properties fell 51.7% q-o-q to $1.3 billion, aided by a decrease in collective sales as well as the luxury sales, according to Colliers. For 2022 in all the decline in residential sales was 18.1% y-o-y to $10.5 billion.

However, industrial deals fell 39.7% q-o-q to around $400 million. The consulting firm attributes to a number of significant transactions that remain awaiting JTC approval. In the entire year, industrial sales declined 59.7% y-o-y.

Colliers anticipates that the investment market to be in price discovery mode for the first quarter of the year, while investors adapt to the new norm of more rates of interest and slow growth. The company is predicting that the value of investment sales to be about $25 billion by 2023, which represents a drop of 15% per year. It also expects the deals will be “bite-sized” because bigger deals typically require an extended timeframe and more leverage.

However, the firm believes an increase in activity as likely to be seen in the second half of 2023, as the direction of interest rates and inflation become more clear. “Despite the narrowing spreads of yields for those who want to invest in primary asset classes, Singapore properties still offer the potential to grow capital over time and provide decent returns on all investments,” remarks Tang Wei Leng as the chief executive officer and director of capital markets and investment services in Singapore for Colliers.

Tang says private wealth investors could be more prominent on the market in the coming year, because of tighter financing as well as other macroeconomic headwinds force institution investors to be forced to step down or take a position. She expects private wealth capital will focus on the residential market for luxury as well as strata-titled commercial spaces and shophouses.

Additionally, Catherine He, Colliers director and head for research in Singapore says that prime office and prime logistics capital value will be supported by positive growth in rental and abundant liquidity. Additionally premium retail value is anticipated to increase over the next few months. “As so the net yields are likely to stay relatively steady until the pace of transactions increases during the latter half of 2023.” she adds.

/1 Comment/by