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Office investment transactions in Singapore increased more than four times in the third quarter this year to $1.7 billion compared to the previous quarter, according to figures compiled by DTZ Research.
The increase was attributed to the sale of DBS Towers 1 & 2 to OUE for $870.5 million, accounting for 50 percent of all office sales.
Retail property deals also saw a significant increase, from $6.8 million in Q2 to $250 million in Q3, partly driven by the sale of 287 strata-titled units in Chinatown Point to a consortium headed by Perennial Real Estate Group.
“The upturn in the commercial property market is creating opportunities for buyers and sellers,” said Shaun Poh, senior director for investment advisory services and auction at DTZ. “More sales are envisaged in the next few months as a few deals are being finalised.”
Mr. Poh said the growing demand may be slowed down by a lack of supply. Total investment sales hit $6.1 billion in Q3, up 23 percent from $5 billion in the previous quarter.
Residential property investments reached $1.9 billion in Q3, representing the biggest share at nearly 30 percent of all investment acquisitions.
The private sector had a 59 percent share of all residential deals in Q3 unlike in the previous quarter when investments were mostly geared towards government land sales of residential land.
More than 50 percent of the private residential investment amount was derived from the collective sale market, while the rest came from bulk acquisitions of luxury condominium units by funds and institutions.
Collective sale transactions reached $634.8 million in Q3 compared to $329.9 million in the earlier period.
Meanwhile, government sales of residential sites saw a 59 percent quarter-on-quarter decline in Q3.