However, residential investment sales for this year is expected to fall 55 percent from last year’s record level, due to a weaker en bloc market.
Singapore saw residential investment sales increase 90.1 percent quarter-on-quarter and 4.7 percent year-on-year to $3.1 billion in the third quarter of 2019, revealed a Colliers International report.
This brings the overall volume for the first nine months of the year to $5.8 billion.
Public land sales accounted for the bulk of the sales at 62 percent, as four sites – Tan Quee Lan Street, Clementi Avenue 1, one-north Gateway and Bernam Street – valued at a combined $1.9 billion were awarded to developers.
The residential investment volume was also boosted by luxury home sales, which include good class bungalows (GCBs).
Transactions for this segment rose 62.4 percent quarter-on-quarter and 53.8 percent year-on-year to $1.1 billion in Q3.
Notable deals in included James Dyson’s acquisition of a super penthouse and a GCB for over $100 million.
But given the weaker en bloc sale market, residential investment sales for this year is expected to fall 55 percent from last year’s record level, before rebounding from 2020 onwards.
The report noted that Singapore real estate remained resilient despite the heightened global uncertainties and macroeconomic headwinds.
In fact, real estate investment sales in the city-state soared 53.7 percent quarter-on-quarter to $11.2 billion in Q3.
“Amid unprecedented levels of uncertainty in the global environment, Singapore remains firmly on investors’ radar owing to its growth potential, stable government, and pro-business policies,” said Tricia Song, head of research for Singapore at Colliers International.
With this, Song expects total investment sales for the whole of 2019 to hit $33.8 billion, which is on par with that of 2018.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com