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The commercial and shophouse sectors registered some $1.2 billion in investment deals, while the industrial sector more than doubled its growth as it posted some $906.1 million of investment deals.
Real estate investment sales activity in Singapore increased 26.7% year-on-year to $3.8 billion in the first quarter of 2021 from $3 billion over the same period last year, reported Singapore Business Review (SBR) citing a Knight Frank Singapore report.
The residential sector led in investment sales, attracting some $1.7 billion in investment during the period under review.
“The Good Class Bungalow (GCB) segment continued to draw strong interest due to its rarified and coveted status, as well as the entry of more family offices setting up in Singapore,” said the report as quoted by SBR.
In fact, the sale of a $128.8 million GCB at Nassim Road in March broke previous sales records in the GCB segment.
Moreover, developers were starting to replenish their land banks via partnerships, as witnessed in Surrey Point’s sale ($47.8 million) by an Amara Holdings joint venture as well as the $33.6 million acquisition of two residential sites at Institution Hill via a consortium comprising Macly Group, LWH Holdings and Roxy Pacific Holdings.
The commercial and shophouse sectors also witnessed an increase, registering some $1.2 billion in investment deals.
Major deals within the commercial sector included Allianz Real Estate’s $633.8 million acquisition of a 50% stake in OUE Bayfront and RBC Investor Service Trust Singapore’s purchase of Certis Cisco Centre for $150 million.
Meanwhile, the industrial sector more than doubled its growth as it posted some $906.1 million of investment deals. This was driven by Lian Beng Group’s acquisition of Breadtalk IHQ for $118 million and AIMS APAC REIT’s purchase of Sime Darby Business Centre for $102 million.
Knight Frank said outbound investment deals jumped 45.6% year-on-year to $9.9 billion in Q1 2021, largely attributed to investors developing data centres overseas.
With this, it expects capital outflow to expand on the back of opportunities overseas. In the local market, the property firm noted that property sales are put on hold as sellers anticipate for better prices.
“In the local real estate market, while sales activity has picked up, the stock of investment properties put up on the market is limited as most sellers are holding on to their assets in anticipation that these properties would be able to fetch a better price in the near future given that economic recovery seems more certain,” said Knight Frank.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: victorkang@propertyguru.com.sg
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