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Singapore property investment sales back to pre-Covid levels

  • Total investment sales grew 33% HOH and 171% YOY to SGD9.6 billion in H1 2021.
  • Q2 2021 commercial volumes grew 23.9% QOQ driven by a few major deals. 
  • Residential investment sales jumped 96.4% QOQ driven by a revival of public and private land sales in Q2.
  • Industrial investment sales surged 105% QOQ in Q2 2021, boosted by the privatisation of Soilbuild Business Space REIT and Ascendas REIT's purchase of a 75% stake in Galaxis.
  • Shophouse sales rebounded strongly by 132% QOQ to SGD310 (USD231) million in Q2 2021 after declining 53.6% QOQ in Q1 2021.

SINGAPORE, 27 July 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 Q2 2021 and its prospects.  

Colliers Research reports that investors took a long term view amid more restrictive Covid measures and expect sales to remain strong in the coming quarters, supported by Singapore's safe-haven status, pro-business environment and economic growth.

Despite the Phase 2 (Heightened Alert) restrictions during 16 May -13 June, total investment sales surged 86.3% QOQ in Q2 2021, as investors took a longer-term view in their real estate investments. 

Ling Wei Kong, Senior Director, Capital Markets, Capital Markets & Investment Services at Colliers, commented: "As Singapore accelerates its vaccination program to immunise 75% of its population by early October and at least two-thirds by 9 August 2021, we can expect further easing measures in H2 2021 and a brighter outlook for investment sales over the next few years."

2021 07 21 Q2 report investment sales volume

2021 07 21 Q2 investment sales largest transactions

 

Commercial 

Commercial sales grew by 24% QOQ, driven by several major deals. Of note, PGIM Real Estate acquired freehold office building 108 Robinson Road for SGD143 (USD107) million, while Maxwell House was sold via a second public tender.

Kong added: "We remain optimistic in the office sector outlook on strong economic growth and benign CBD Grade A supply."

Residential

Colliers Research noted that Residential sales did well in Q2 2021, growing 96.4% QOQ to SGD3.1 billion, owing to a revival in Government Land Sales and improvements across all segments (Good Class Bungalows, strata, landed housing).

Steven Tan, Executive Director of Investment Services, Capital Markets & Investment Services at Colliers, said: " With strong developer sales and a depleting pipeline, we can expect private land sales via en bloc and collective sales to recover this year."

Industrial

Colliers Research reports that Industrial investment sales jumped 105% QOQ to SGD2.0 billion in Q2 2021. Big-ticket industrial property sales continue to be buoyant, boosted by Blackstone's privatisation of Soilbuild Business Space REIT and Ascendas REIT's acquisition of a 75% stake in Galaxis.

Pearl Lok, Director, Investment Services, Capital Markets & Investment Services, added, "We see positive long-term growth in warehouses, data centres and hi-specs space on the back of accelerated e-commerce growth and technology adoption."

Shophouses

Shophouse sales rebounded strongly by 132% QOQ to SGD310 million in Q2 2021 after declining 53.6% QOQ in Q1 2021 (owing to pent-up demand in Q4 2020). 

Tan commented, "Shophouses are very versatile and provide a stable rental income with good capital appreciation potential. It is no surprise to see that H1 2021 shophouse sales volume grew 27.4% HOH and 272% YOY to SGD444 million."

Download our quarterly investment sales report for Q2 2021 here.

 

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Media Contact:

Annabelle Taylor