Singapore, 07 May 2018 - Colliers International expects the real estate investment sales market in Singapore to maintain its positive momentum and grow 15% year-on-year (YOY) to SGD46 billion in 2018, and climb a further 5-10% YOY in 2019, according to its latest quarterly report.
Property developers and investors shrugged off concerns over a global trade war and heightened equity market volatility in Q1 2018, injecting SGD11 billion into the Singapore investment sales market - up by 89% YOY. The robust investment figure in Q1 was predominantly driven by the residential sector. Residential land sales, including several large collective sale transactions, accounted for about SGD9.15 billion or 83% of the total investment sales in the quarter.
Notably, the five largest deals in Q1 2018 were all residential collective sales: Pacific Mansion which went for SGD980 million; Park West at SGD840.9 million; Pearlbank Apartments at SGD728 million; Goodluck Garden at SGD610 million; and Brookvale Park at SGD530 million.
Ms. Tang Wei Leng, Managing Director at Colliers International, commented, “Interestingly, barely five months into 2018, the transaction value of residential collective sale deals has caught up with that of 2017. Colliers noted that there were 24 transactions amounting to SGD8.12 billion as at May 03, close to the SGD8.13 billion from 27 deals last year. The collective sale market is likely to remain buoyant this year, barring any unforeseen events. That said, to get a deal across the line, it is also key that owners set realistic asking price. Owners’ expectations have risen in tandem with the rising property market – particularly so of late, as the cost of buying a replacement home has increased.”
Investment sales from other sectors – industrial, commercial, shophouse and hospitality – made up the remaining 17% (or SGD1.85 billion) of the total transaction value in Q1 2018. While they are unlikely to overtake residential investment sales any time soon, Colliers believe there are some upside ahead as most of these sectors have bottomed.
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