Singapore is ranked sixth in the global resilient cities index
Singapore has risen six places to become the sixth most resilient city in the world, up from 12th position in 2021. According to Savills, a real estate consultancy that tracks the resilience of over 490 cities around the world. New York topped the list for the second consecutive year. Tokyo, London and Seoul were the next to be ranked.
Resilient Cities index published on Monday, 25 March, measures a city’s ability to support its residents and employees in the face of economic, social and environmental changes.
Savills said that these cities are attractive to both investors and occupants.
Four key areas were studied: the economic strength of a city, its knowledge economy, and technology. Also examined was environmental and social governance (ESG) and real estate investments.
Savills said that the influx of people who chose to live and work there helped Singapore’s rise.
The city’s population shifted from recording “new outflows” to “net inflows”, and the prime residential rents increased by 42 percent between 2021-2023.
Meanwhile, real estate investment volumes remained stable. Savills noted that “this is no small feat in the face of global economic slowdown and wider economic uncertainty.” Singapore’s competitive tech scene is also a good foundation for the future.
Venture capital investment, for example, increased from US$8,2 billion in 2020 to US$9,4 billion in 2030, despite a global decline in volume.
Alan Cheong believes that Singapore will continue to improve in the next decade.
He said that this is due to the Urban Redevelopment Authority Master Plan 2025 which has urban resilience as a key theme.
Jeremy Lake said that the city-state will likely see a greater volume of investment deals by 2024, as both buyers and sellers are expected to return to market.
Singapore’s political stability, safe-haven status and resilient economy are expected to attract more investor interest.
Savills has noted that, in general, there is a strong relationship between the economic fundamentals of a city and its resilience. It said that real estate investors are increasingly focusing on larger cities, especially those with a broad and deep economic base.
Savills said that these cities will likely see an inflection point in the next year, as funding conditions improve and real estate investments begin to recover. Climate change and other ESG issues are now a major concern, which is causing economic growth to be pushed aside.
