THE FUTURE DEMAND OF RESIDENTIAL AND OFFICE SPACES IN A POST-PANDEMIC SINGAPORE

Abstract

The COVID-19 epidemic in 2019 has created an unprecedented crisis for the real estate sector. The crisis is due to the safety measures imposed by governments worldwide that have altered how people live and interact with physical space. As more people are working from home (WFH), demand for large residential flat types has increased (Lin, 2021), and demand for office space has decreased (Li, 2020). As a post-pandemic world approaches, this study will examine and assess the effects of the current WFH trend on demand for various real estate classes in Singapore, particularly the office and residential sectors. We can then conclude what this means for the future of the real estate industry. In achieving this, a survey was conducted, with a sample size of 103 respondents alongside secondary data. 68.9% of the respondents expressed they prefer WFH over going to the office, and 55.3% indicated that they would consider switching or finding jobs that allow them to WFH. Demographic factors such as age and income accounted for people’s ensuing housing choices amidst this period of WFH. The results from the secondary data showed that the number of HDB resale flats registered for 4, 5-Room, and Executive increased from 2020Q1 to 2022Q1. As for office spaces, the median rental price increased, and vacancy rates decreased from 2020Q1 to 2022Q4. These findings can help citizens and other real estate management understand the real estate industry in a post-pandemic world, thereby understanding the appropriate measures to address the demand for spaces in Singapore.