Industry News

Shell Singapore is set to relocate its operations to Asia Square Tower 1 (AST1) in Singapore’s Marina Bay financial district, as announced by the Singapore Central Private Real Estate Fund (SCPREF) on 24 April 2026. This significant move involves Shell occupying approximately 100,234 square feet across three floors, marking one of the largest office leasing transactions in Singapore for 2026. The relocation is scheduled for the first half of 2027.

The decision to move to AST1 aligns with Shell Singapore’s strategy to be closer to its customers and partners, enhancing its presence in the Marina Bay area. The new location will offer a high-performance workplace equipped with smart technology, supporting flexible and sustainable working practices. Kah Peng Aw, Chairman of Shell Companies in Singapore, stated, “Asia Square Tower 1 provides a strong platform for Shell Singapore’s continued growth. We are confident this move will strengthen collaboration across our teams and with external partners.”

Pei Teng Foo, Chief Executive of SCPREF, expressed enthusiasm about the move, highlighting it as a testament to the quality and strategic positioning of SCPREF’s assets. “Shell’s decision to relocate to our portfolio is a strong endorsement… and underscores the appeal of the SCPREF’s assets to multinational companies,” Foo remarked.

SCPREF, managed by Hongkong Land, focuses on ultra-premium commercial properties in Singapore, with an initial portfolio valued at S$8.2b. This includes AST1, which offers connectivity to multiple MRT stations and a range of amenities, reinforcing its appeal to blue-chip tenants like Shell.

IHH Healthcare, a global integrated healthcare provider, reported significant growth in 2025, supported by its expanding network of 190 facilities across 10 countries. The Group has outlined a strategic roadmap towards 2030, focusing on clinical innovation, patient care, and environmental stewardship, as detailed in its newly released 2025 Annual and Sustainability Reports.

The Group successfully met 14 out of 16 sustainability goals set in 2022, demonstrating its commitment to transforming healthcare delivery across four core pillars: Patients, People, Public, and the Planet. This progress includes achieving gender parity in leadership roles, conducting over 4.2 million health screenings, and launching a large-scale solar project in Türkiye.

Looking ahead, IHH aims to maintain international benchmarks in clinical quality, improve billing transparency, and enhance patient satisfaction through better Net Promoter Scores. The Group also plans to sustain gender parity in leadership, reduce workplace injuries, and provide free or subsidised cancer treatments to underserved communities.

Environmental targets for 2030 include reducing emissions by 42% from the 2025 baseline, achieving a 30% recycling rate for non-hazardous waste, and improving water efficiency by 10%. These initiatives are part of IHH’s broader strategy to reach net zero by 2050.

Despite dynamic near-term conditions, IHH remains optimistic about its long-term growth, driven by strong demand for quality healthcare and its commitment to sustainability.

DBS, in collaboration with Enterprise Singapore and the Infocomm Media Development Authority, has launched an enhanced version of its Spark GenAI programme to accelerate AI adoption among small and medium enterprises (SMEs) in Singapore. This initiative aligns with the country’s National AI Strategy 2.0, which seeks to integrate AI more effectively across businesses.

The updated programme introduces a three-tier approach tailored to SMEs’ varying levels of AI readiness. The tiers—Start, Accelerate, and Scale—offer guidance from basic AI tools to comprehensive integration across operations. Participating SMEs will benefit from advisory support, workshops, and access to a global network of over 16,000 solution providers through IMDA’s Open Innovation Platform. Eligible businesses can also receive up to 50% grant support for AI-enabled solutions.

A new AI playbook, “Implementing AI for Impact,” developed with KPMG and supported by SkillsFuture Singapore, complements the programme. It provides practical use cases, success stories, and a readiness diagnostic tool to help businesses assess their AI capabilities.

Chen Ze Ling, Group Head of Corporate and SME Banking at DBS, emphasised the programme’s role in reducing adoption barriers and supporting businesses in building future-proof capabilities. Johnson Poh from IMDA highlighted the importance of equipping SMEs to harness AI’s potential, whilst Geoffrey Yeo from Enterprise Singapore reiterated the commitment to providing practical tools for AI adoption.

The enhanced Spark GenAI programme is part of DBS’ ongoing efforts to leverage AI in business transformation, following its recognition as the World’s Best AI Bank in 2025.

Private home prices in Singapore experienced a modest increase in the first quarter of 2026, whilst sales activity saw a decline, according to the latest data from the Urban Redevelopment Authority (URA). The overall price index for private residential properties rose by 0.9%, reflecting a cautious sentiment among buyers amidst macroeconomic uncertainties and rising interest rates.

Sales of private homes, excluding executive condominiums (ECs), fell for the second consecutive quarter, with a total of 5,413 units sold in Q1 2026. New sales saw the most significant drop, decreasing by 31.5% quarter-on-quarter, attributed to fewer project launches during the Chinese New Year period. Resale volumes also dipped by 8.6%, marking the lowest quarterly resale volume in two years.

Despite the overall slowdown, certain market segments performed well, including new homes in attractive locations and suburban homes with accessible price points. Notably, developments like Rivelle@Tampines and Pinery Residences sold over 90% of their units within the first weekend.

Rental prices showed a slight rebound, increasing by 0.3% after a previous decline. However, the private rental market faces challenges due to potential rate hikes and macroeconomic pressures, particularly affecting expatriate tenants. Nonetheless, emerging sectors such as AI are expected to bring an influx of expatriates, potentially stabilising rental demand.

Looking ahead, the property market’s trajectory remains uncertain, with geopolitical tensions in the Middle East potentially influencing costs and interest rates. However, upcoming launches like Vela Bay and Tengah Garden Residences are anticipated to bolster new home sales in the second quarter. Realion (OrangeTee & ETC) Group projects private residential prices to grow by 2.5% to 4.5% in 2026, with 23,500 to 25,500 transactions expected for the year.

Singapore’s industrial market has marked its 22nd consecutive quarter of rental growth, with the JTC All Industrial Rental Index rising by 0.4% in the first quarter of 2026. This growth, however, shows a slight deceleration from the 0.5% increase observed in the previous quarter. Tricia Song, CBRE Head of Research for Singapore and Southeast Asia, noted that whilst occupier demand remains robust, tenants are becoming more selective, focusing on location and asset specifications.

Among the various segments, single-user factory rents saw the most significant increase, rising by 1.0% quarter-on-quarter. This was bolstered by major completions such as Trans Auto Logistics’ facility and Sumitomo Seika Singapore’s facility. Meanwhile, multi-user factory rents increased by 0.5%, with notable completions including Smart Food @ Mandai and Azalea Kitchens.

The business park segment experienced a 0.3% rise in rents, despite a slight increase in vacancy rates to 23.3%. This is attributed to challenges faced by some facilities in retaining tenants due to less competitive specifications. Conversely, newer assets in City Fringe locations continue to attract tenants, sustaining rental growth.

Warehouse rents rose by 0.2%, with significant completions like Jurong Logistics Terminal 5 and a cold-chain food logistics facility at 8 Jalan Besut. However, occupancy rates for warehouses decreased slightly to 89.4%.

Looking ahead, the Johor-Singapore Special Economic Zone is expected to enhance investment confidence, whilst Singapore’s strong AI-related manufacturing sector is likely to support continued demand. CBRE anticipates steady rental growth in the prime logistics segment, with occupancy rates potentially reaching 97% by the end of 2026.

CapitaLand Investment Limited (CLI), a prominent global real asset manager, has been awarded a S$2.4b investment mandate by Income Insurance Limited to manage its direct real estate portfolio. This portfolio includes retail, commercial, and industrial assets, both directly held and through joint ventures. CLI aims to enhance the performance of these assets in Singapore and explore new investment opportunities across the Asia Pacific region.

This mandate further strengthens CLI’s position in Singapore, with over S$12.1b in transactions recorded in 2025 and 2026. The company continues to focus on capital recycling across various asset classes to maximise returns for investors. Recent transactions include the joint acquisition of Ascent, a premium business space, for S$490 million, and the divestment of Asia Square Tower 2 for S$2.5b, followed by the acquisition of Paragon for S$3.9b.

Andrew Lim, Group Chief Operating Officer and CEO of Real Estate, Private Funds at CLI, expressed enthusiasm about the partnership, stating, “We are delighted and honoured to welcome Income Insurance as a valued capital partner. CLI’s level of investment activity reflects our capital partners’ confidence in us as a trusted investment manager.”

David Chua, Chief Investment Officer at Income Insurance, highlighted the strategic importance of real estate in their investment portfolio, noting, “Tapping CLI’s portfolio and asset management expertise will enable Income Insurance to further enhance the value of our real estate portfolio.”

With Singapore’s reputation as a stable global wealth hub, CLI is well-positioned to benefit from ongoing capital inflows, managing approximately 200 properties across diverse asset classes in the country.

Singapore’s headline Consumer Price Index (CPI) increased by 0.5% month-on-month in March, reflecting the direct impact of surging energy prices, according to a report by UOB Global Economics and Markets Research. The rise in energy costs, particularly Brent crude oil prices, which surged over 40% in March, significantly influenced petrol prices, leading to a 16.4% month-on-month increase. This contributed to a year-on-year headline CPI rise of 1.8%, aligning with Bloomberg’s consensus but slightly below UOB’s projection of 1.9%.

The core CPI, which excludes private transport and accommodation costs, saw a more modest increase of 0.1% month-on-month. Key components such as food and healthcare showed little to no sequential growth. However, land transport services rose by 2.3% month-on-month, driven by a 6.7% increase in point-to-point transport costs as private hire companies temporarily raised fares due to rising fuel prices.

The Monetary Authority of Singapore (MAS) maintained its 2026 inflation forecast range at 1.5–2.5%, citing potential upside risks due to imported cost pressures. The outlook remains cautious, with domestic consumer spending potentially affected by economic uncertainties and supply chain disruptions.

UOB’s report highlights that whilst first-round effects of the energy supply shock are evident, it is premature to assess second-round effects. The bank expects core inflation to strengthen from June 2026, peaking at 2.5% in August-September, before moderating towards 2.0% by the end of the year. MAS is anticipated to tighten monetary policy further in October, with potential earlier action if inflation expectations accelerate.

Frasers Centrepoint Asset Management Ltd., the manager of Frasers Centrepoint Trust (FCT), has announced a 1.4% year-on-year increase in Distribution per Unit (DPU) for the first half of the financial year 2026, reaching 6.136 cents. This growth is attributed to the robust performance of its suburban retail portfolio, with committed occupancy at 99.8% and healthy rental reversions.

The trust’s gross revenue surged by 20.3% to $221.9m, driven by contributions from the Northpoint City South Wing acquisition and higher rents across its malls. Net property income also rose by 20.2% to $160.8m. The distribution to unitholders increased by 13.6% to $125m.

Chief Executive Officer Richard Ng highlighted the progress in Asset Enhancement Initiatives (AEIs) at Hougang Mall and NEX, which aim to improve asset yields and support sustainable income growth. Over 88% of the AEI space at Hougang Mall is committed, with completion expected by September 2026. AEI works at NEX will commence in May 2026.

FCT’s financial position remains strong, with an aggregate leverage of 40% and a well-staggered debt maturity profile. Approximately two-thirds of its borrowings are hedged to fixed interest rates. The trust’s proactive cost management includes fully hedged electricity costs for FY26.

Looking forward, FCT plans to continue its growth strategy through strategic acquisitions and optimising portfolio performance. Despite macroeconomic uncertainties, the trust remains confident in the resilience of Singapore’s suburban retail sector, supported by population growth and rising household incomes.

Savills Research has revised its forecast for Singapore’s office rental growth in 2026, increasing it from 2% to a range of 3%–5% year-on-year. This adjustment is attributed to tight supply conditions and sustained occupancy levels. In the first quarter of 2026, average rents for Grade A offices in Singapore’s Central Business District (CBD) rose by 0.6% quarter-on-quarter to S$10.02 per square foot, marking the highest level since the pre-pandemic period of 2019.

The demand for premium office space remains robust, with Grade AAA office rents increasing by 0.4% quarter-on-quarter to S$13.28 per square foot in Q1 2026. However, the growth momentum in this segment is moderating as rents approach cyclical highs. The vacancy rate for CBD Grade A offices decreased by 0.1 percentage points to 6.6%, the lowest since Q3 2024.

Ashley Swan, Executive Director of Commercial & Industrial at Savills Singapore, noted the continued leasing activity and tightening supply, particularly in premium grade buildings. Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, commented that limited new supply and low vacancy levels allow landlords to maintain pricing power, supporting rental growth.

Despite geopolitical uncertainties and rising costs, the structural supply constraints are expected to drive rental performance. The forecasted rental growth reflects these dynamics, with landlords positioned to benefit from the tight market conditions.

CapitaLand Integrated Commercial Trust (CICT) has announced an 8% year-on-year increase in gross revenue for the first quarter of 2026, ending 31 March. This growth is attributed to the full acquisition of CapitaSpring and contributions from Gallileo. The net property income also saw a 7.9% rise, reflecting the trust’s robust financial performance.

CICT’s portfolio demonstrated strong operational metrics, with a committed occupancy rate of 95.2%. Retail occupancy was particularly high at 97.8%, whilst office occupancy stood at 93.7%. The retail sector experienced a 4.4% rent reversion, with tenant sales per square foot increasing by 2.2% year-on-year, supported by seasonal promotions and a rise in tourist arrivals.

In the office sector, CICT recorded a 6.1% rent reversion, with significant leasing interest from industries such as Banking, Insurance & Financial Services, IT & Telecommunications, and Energy & Commodities. The total new and renewed leases for the quarter amounted to 121,300 square feet.

CICT is also set to divest Asia Square Tower 2 at a 9.9% premium to its valuation, with plans to reinvest the proceeds into Paragon, a freehold integrated development, offering a higher net yield of 3.9%. Additionally, a S$160m asset enhancement initiative is planned for Plaza Singapura and The Atrium@Orchard, aimed at upgrading infrastructure and enhancing the retail experience.

The trust maintains a healthy financial position with a low aggregate leverage of 38.5% and a reduced average cost of debt at 2.9%. With 76% of borrowings on fixed interest rates, CICT is well-positioned for future growth. These strategic moves underscore CICT’s commitment to enhancing its portfolio and delivering value to stakeholders.