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Singapore property investment expected to recover to pre-Covid levels in the coming quarters

  • Total investment sales grew 25.8% QOQ and 47.9% YOY (ex-mergers and GLS) in Q1 2021.
  • Q1 2021 commercial volumes grew 43.8% YOY, and  377% QOQ as investor confidence returns. 
  • Residential investment sales grew 12.9% QOQ and 154% YOY excluding GLS, with no GLS sales recorded in Q1 2021.
  • Industrial investment sales jumped 141% QOQ in Q1 2021, boosted by a new 14-property fund and several light industrial transactions.
  • Shophouse continued to see a buoyant investment volume in Q1 2021 of SGD134 million, reflecting a 93.0% YOY increase and a 53.6% QOQ decline.
     
     

SINGAPORE, 15 April 2021 – 

Colliers (NASDAQ and TSX: CIGI), a global leader in commercial real estate services, has published its latest market research report that examines Singapore real estate performance investment in Q1 2021 and its prospects ahead.

Colliers Research reports improving investor sentiments and expects stronger sales in the coming quarters recovering to pre-Covid levels, supported by Singapore' safe-haven status, pro-business environment and economic growth.

Tricia Song, Head of Research, reported: "Mobility and economic activities going forward should further increase due to the more easing measures introduced to allow 75% of employees at the workplace at any one time from 5 April onwards.

Singapore investment sales rose 25.8% QOQ and 47.9% YOY (ex-mergers and Government Land Sales) in Q1 2021 to SGD3.8 billion led by the commercial and industrial segments due to a few major deals, including a half-stake in OUE Bayfront for SGD 634 million, sale of YewTee Point, and Boustead injecting 14 properties into the newly established Boustead Industrial Fund at SGD469 million.

largest transaction Q1 2020

Colliers Research also pointed out that the Residential sector also recorded more activity sequentially (ex-GLS) with continued strong Good Class Bungalows (GCBs) sales and almost doubling of landed housing sales.

COMMERCIAL

Jerome Wright, Senior Director, Capital Markets, commented: "Q1 2021 commercial volumes excluding REIT mergers  grew 43.8% YOY and  377% QOQ, as investor confidence returns with the reopening of Singapore's economy. Commercial assets especially Grade A office buildings remain attractive as more tech giants set up bases in Singapore, and potentially leveraging on the URA Incentive Scheme."

 

RESIDENTIAL

Colliers Research noted the absence of GLS in Q1 2021, resulting in lower residential investment sales. However, excluding GLS, residential investment sales grew 12.9% QOQ and 154% YOY in Q1 2021 to SGD1.6 billion.

Steven Tan, Senior Director of Investment Services at Colliers International, said: "Foreign investors' confidence in Singapore's real estate market is very strong, the sale of all 20 units at the completed freehold luxe condominium, Eden, for SGD293 million to the Tsai family of Taiwan is a great testimonial."

 

INDUSTRIAL

Industrial investment sales in Q1 2021 jumped 141% QOQ to SGD976 million, boosted by the setting up of a 14-property SGD469million Boustead Industrial Fund and the sale of Admirax, a high-specification light industrial building for SGD142 million.

Pearl Lok, Associate Director, Investment Services, added, " We see positive long-term growth as investors seek warehouses, data centres and hi-specs space to leverage growing e-commerce and technology trends."

 

SHOPHOUSES

Mr Tan commented, "Shophouses are sought after as they offer flexible property usage, a stable rental income and capital appreciation potential at a palatable investment quantum.  It is no surprise to see that Q1 2021 continued to see a buoyant investment volume of SGD134 million, reflecting a 93.0% YOY increase and a 53.6% QOQ decline."

 

Download our quarterly investment sales report for Q1 2021 here.

 

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Media Contact:

Annabelle Taylor