A MARKET ANALYSIS OF THE MACRO AND MICRO ECONOMIC FACTORS AFFECTING THE REAL ESTATE OFFICE SECTOR IN SINGAPORE

Abstract

This research revolves around the macro and micro economic factors that influence the Singapore office sector. This study offers an insightful depth for investors and researchers who wish to discover the likely factors behind the rent and capitalization rates of the office sector in Singapore. Besides, the study also provides a forecast of the long-term trend of rer.t, capitalization rates and capital values under an expectation augmented, structural stock-flow adjustment and error-correction model. Us.ng a structural stock-flow model, Chapter Three examines the various variables used to determine net space absorption rate and rent. The error-correction form of the stock-flow model and the explanatory variables will be discussed in Chapter Four to determine the capitalization rates. Chapter Five will demonstrate the final results of the models specification and forecasting results.