Commercial Property Investment Sales Fall

Commercial Property Investment Sales Fall Sharply In Q3

SINGAPORE – Knight Frank revealed that S$4.8 billion worth of investment properties were transacted here during the third quarter, according to a report published by the real estate consultancy on Tuesday afternoon (4 October, SGT).

This brought the combined real estate investment sales in Singapore to S$26.2 billion for the first nine months of 2022.

However, the property investment sales in Q3 was 48.9 percent lower than the preceding quarter and 38.5 percent weaker compared to the same period in 2021. In particular, deals involving commercial properties declined significantly during the quarter under review as versus the past two quarters.

“Unlike the previous quarter where commercial sales were at the forefront of real estate investment activity, the sector was muted in Q3 2022, particularly with the saleable stock of quality office space and buildings being limited,” explained Knight Frank.

The real estate consultancy’s data reflect transactions as of 30 September 2022. It defines property investment sales as deals involving an entire building or property sold for at least S$10 million, or bulk sales within a project with the same minimum amount.

Knight Frank said the plunge in overall property investment sales in Singapore in Q3 2022 comes as investors become more worried over the dismal economic situation across the world.

“A deterioration of economic conditions globally and rising interest rates exacerbated concerns over persisting headwinds, as business sentiments worldwide dialled down in the third quarter,” added the real estate consultancy.

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