Singapore Property Investment Sales

Singapore Property Investment Sales Down 10% In Q1 2023

SINGAPORE – Overall real estate investment sales in the city-state declined by about 10.64% quarter-on-quarter to S$4.2 billion during the first quarter of the year compared the last three months of 2022, according to a new report from Knight Frank published on Wednesday evening (5 April, SGT).

Of the figure, commercial property transactions accounted for S$1.9 billion, based on the real estate consultancy’s latest Singapore Investment Market Update.

The most expensive commercial real estate deal during period under review was the acquisition
of a 50 percent interest in the Nex mall at just over S$1.0 billion by Frasers Property Ltd and Frasers Centrepoint Trust. This was followed by the S$399 million purchase of the 39 Robinson Road office building by Singapore-listed shipbuilder Yangzijiang.

But looking at the figures on a year-on-year basis, total property investment sales in Singapore plunged in Q1 2023 to S$4.2 billion, down 61 percent from the S$10.8 billion recorded during the first quarter of 2022.

The city-state’s property investment market “was off to a slow start” in Q1 2023, registering the
lowest quarterly total since the 2nd quarter of 2022, when the local authorities introduced the circuit breaker in the early days of the COVID-19 pandemic, stated Knight Frank in its report. Nonetheless, there were still some acquisitions.

“Although rising interest rates and economic disruptions have resulted in a more cautious market, high-net-worth buyers are purchasing properties for capital preservation and long-term appreciation, as well as income generation,” noted Daniel Ding, Head of Capital Markets at Knight Frank in Singapore.

“(But) following the collapse of Silicon Valley Bank (SVB) and the merger of Credit Suisse and UBS Group that were announced in March 2023, and with interest rates not yet stabilised, the investment market in Singapore will likely remain cautious,” forecasted Knight Frank, adding that investors will likely check for signs of repricing before deciding on their next move.

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