Singapore Commercial Property Investments Hit US$9.6bil In 2021
SINGAPORE – Data from Real Capital Analytics (RCA) shows that commercial real estate (CRE) deals here for the whole of 2021 surged to US$9.6 billion, a nearly 3-fold growth from the US$3.2 billion seen in 2020, reported Mingtiandi on Monday evening (3 January, SGT).
RCA credited the significant resurgence in commercial property transactions in Singapore to a deluge of inbound foreign investments, which accounted for over 50 percent of the overall figure.
“The US$5.3 billion of overseas investment garnered so far in 2021 puts Singapore above the likes of New York and Tokyo, a remarkable feat considering how much smaller its investment market is,” noted Benjamin Chow, Head of analytics for Asia at RCA.
Including transactions pending completion by year-end, Singapore’s commercial property investment tally for 2021 represents the second highest annual total on record that is only exceeded by the record level witnessed in 2019.
In particular, two-thirds of commercial real estate deals in the city-state last year comprised office properties and retail assets, led by office buildings in Singapore’s central business district (CBD) and shopping malls in the vicinity.
During the first month of 2021, a consortium consisting of Allianz Real Estate and South Korea’s National Pension Service agreed to acquire a half-stake in OUE Bayfront tower from OUE Commercial REIT for nearly US$477 million.
That was the largest transaction last year until December 2021, when a joint venture (JV) between Nuveen Real Estate and JP Morgan Asset Management concluded the 50:50 purchase of the One George Street office building from CapitaLand Integrated Commercial Trust and FWD Insurance for a total of US$944 million.
Other major office deals last year included Haiyi Holdings’ US$220 million acquisition of a 30 percent stake in 9 Penang Road, the US$314.5 million purchase of 61 Robinson Road by Rivulets Investments, and Ascendas REIT’s acquisition of the remaining 75 percent interest it doesn’t hold in Galaxis for US$400 million.