Singapore Property Investment Sales

Singapore Property Investment Sales Down 36.9% In Q2

SINGAPORE – Data from real estate consultancy Colliers showed that overall property investment sales in the city-state fell by 36.9 percent to S$6.8 billion in Q2 from a high base in the prior quarter, and transactions took longer to complete during the period, according to a report published on Wednesday afternoon (20 July, SGT).

Nonetheless, total property investment sales in Singapore surged by 46.3 percent year-on-year to S$17.7 billion in H2 2022, with government land sales, en bloc sales, and office property deals primarily accounting for the investment volume.

Looking ahead, Colliers expect overall property investment sales here would rise by 15 percent year-on-year to S$32.6 billion for the whole of 2022.

However, commercial property transactions in Q2 plunged by 58 percent quarter-on-quarter to S$2.1 billion due to a large number of big-ticket sales completed in Q1. Still, the investment volume for the latest quarter was supported by office property sales, like the divestment of Comcentre and Westgate Tower, while one or two bigger deals roll over into the third quarter.

For the whole of 2022, commercial property sales are forecasted to increase by 20 percent year-on-year to S$11.9 billion, as Colliers expects investment volumes to increase in the 2nd half, with “several sizable assets and portfolios” coming onto the market amidst buoyant prices.

Colliers is particularly upbeat on Singapore’s office market thanks to rising office rents and limited supply.

Meanwhile, mixed-use developments or integrated projects continued to see good interest in Q2 2022, as shown by the S$700 million collective sale of the Golden Mile Complex, for which the government gave incentives for its redevelopment.

“Colliers expects more of such mixed-use developments to transact in the private market, as they entail less additional buyer stamp duties than pure residential developments, and offers the buyer asset class diversification,” added the real estate consultancy.

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