Total investment value in Q3 2013 soared quarter-on-quarter to S$12.3 billion from S$5.3 billion in Q2 2013, according to Knight Frank.
In a release the company said the jump in investment sales was primarily attributed to transactions within the public sector which saw the award of plum Government Land Sale (GLS) sites such as Yishun Ave 2/ Yishun Central 1 and Cecil Street/ Telok Ayer Street. As well, the total acquisition value of around S$5.7 billion derived from the floatation of various Real Estate Investment Trusts (Reits) such as SPH Reit, Soilbuild Business Space Reit and OUE Hospitality Trust contributed to the rise.
Private investment sales rose nearly three-fold quarter-on-quarter to S$8.3 billion in Q3, while public investment sales surged 82.1 percent quarter-on-quarter to S$4.0 billion from S$2.2 billion.
Meanwhile, the implementation of the Total Debt Servicing Ratio (TDSR) ruling on 29 June 2013 resulted in lacklustre buying sentiment in the residential sector and waning investor interest. With this, the sector’s total investment sales plunged 45.7 percent to S$1.5 billion in Q3 2013 from S$2.8 billion in Q2 2013.
On the other hand, the executive condominium (EC) segment dominated public residential investment sales in Q3 2013 as investment sales from EC sites made up 50 percent of the total residential investment value of S$1.5 billion.
Moreover, the hotel and commercial sector posted a stellar performance, with total investment sales increasing four-fold quarter-on-quarter to S$9.1 billion in Q3 from S$2.3 billion in Q2.
The industrial sector also recorded higher transaction volume during the period, with total investment value rising to S$1.4 billion.
This year’s third quarter also witnessed robust activity from the Reits players as private investment sales account for 67.3 percent of the overall investment sales value in Q3 2013, while public investment sales take up the remaining 32.7 percent.
Ian Loh, Director & Head, Investment & Capital Transactions at Knight Frank, noted that investment activity in Singapore “has picked up fairly strongly as major commercial, hotel and industrial deals were transacted in the third quarter,” reflecting investors’ continuing confidence in Singapore’s real estate market.
Amy Kelly, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email amy@propertyguru.com.sg
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