Singapore Real Estate Investment Sales Fall

Singapore Real Estate Investment Sales Fall 33.4% In 3rd Quarter

SINGAPORE – Data from Savills that overall property investment sales dropped 33.4 percent quarter-on-quarter to almost S$5 billion in Q3 2022, pushing the tally for the first three quarters to S$21.7 billion, reported the Singapore Business Review (SBR) on Thursday morning (13 October, SGT).

The real estate consultancy noted that total real estate investment sales in Singapore declined for the 2nd straight quarter, amidst higher interest rates and ongoing geopolitical uncertainties across the world.

“High interest rates and increased global political uncertainties are changing the profile of investors away from large private equity funds and towards family offices and companies,” said Savills’ Head of Real Estate Research & Consultancy, Alan Cheong.

Compared to the same period in 2021, overall property investment sales were reduced by 32.5 percent. It is also the lowest volume since Q1 2021, when the figure hit S$3.89 billion.

Looking ahead, property consultancy Savills thinks that real estate investment sales in Singapore for the 4th quarter would reach between S$3 billion and S$4 billion, as 2 small plots will be awarded during the period under the Government Land Sales (GLS) Programme.

This would push up the entire year’s tally to S$24 billion to S$25 billion, which is marginally lower than the real estate consultancy’s earlier forecast that ranged from S$26 billion to S$29 billion.

“How the market will develop in 2023 depends heavily on whether the Monetary Authority of Singapore (MAS) and other central banks pivot on their current stance of raising or keeping interest rates high. If rates do inflect, we may see a resumption of acquisitive activity by large private equity investors for big ticket item sales,” added Savills.

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