27 January 2014

Singapore ranked 10th-most dynamic city by Jones Lang LaSalle

Singapore ranks 10th globally in Jones Lang LaSalle's new and proprietary City Momentum Index (CMI), which indicates which cities demonstrate strong short term socio-economic and commercial real estate momentum and longer term foundations for success. 

According to Jeremy Kelly, Director, Global Research for Jones Lang LaSalle: "City momentum is about far more than just raw GDP growth.  The true foundation of highly dynamic cities emerges from such factors as speed of innovation and creation of cutting-edge businesses along with new building construction, property price movement and investment in real estate from cross-border investors and corporations. 


"By focusing on the features of a city that are likely to underpin future performance, the CMI stands apart from the standard historic performance upon which most indices are based. It is such measures of dynamism in infrastructure, connectivity and innovation that we believe will be steering many investment and location decisions in the future, though investors and corporates should note that high momentum can pose both risk and opportunity."         


GLOBAL TOP 20
1
San Francisco
2
London
3
Dubai
4
Shanghai
5
Wuhan
6
New York
7
Austin
8
Hong Kong
9
San Jose
10
Singapore
11
Shenzhen
12
Jakarta
13
Beijing
14
Chengdu
15
Los Angeles
16
Tianjin
17
Boston
18
Seattle
19
Tokyo
20
Lima


The top cities in Asia Pacific and the Middle East have these characteristics:

  • Elite cities that wield clear economic might on the global stage, accounting for one-quarter of the world's direct commercial real estate investment activity from 2012-2013.
    • Dubai (3), Hong Kong (8), Singapore (10) and Tokyo (19)
  • Rapidly urbanising cities in China that continue to grow with massive city-building programmes despite a slowing economy
    • Shanghai (4), Wuhan (5), Shenzhen (11), Beijing (13), Chengdu (14) and Tianjin (16)
  • Growth hotspots beyond the BRICs driven by urban consumerism
    • Jakarta (12)

*The City Momentum Index assesses 111 cities world-wide with a weighted overall score based on 34 short-term and longer term variables.


Short-term socio-economic momentum variables (40 percent of the model) include recent and projected changes in GDP and population, air passenger traffic, corporate headquarter presence and recent levels of foreign direct investment as a proportion of a city's economy.


Short-term commercial real estate momentum variables (30 percent of the model) include recent and projected percentage changes in office net absorption, office construction, office rents, shopping mall construction and retail rents, direct commercial real estate investment volumes and real estate transparency.


Longer term variables (30 percent of the model) that are likely to determine future economic strength and real estate momentum include high-value incubator indicators such as university presence and educational infrastructure, innovation capability and presence of technology and venture capital firms.