Property investments sales up 6.9% in Q3

Cheryl ChiewOctober 20, 2021

singapore-city

Property investments sales were at $7.5 billion in Q3 2021, a 79% year-on-year increase.

Singapore’s real estate investment sales increased 6.9% quarter-on-quarter and 79% year-on-year to $7.5 billion in the third quarter of 2021, on the back of higher Government Land Sales (GLS), revealed Colliers International.

Mixed-use transactions surged 816% quarter-on-quarter to $2.5 billion, driven by the award of two mixed-use sites at Marina View and Jalan Anak Bukit.

Residential sales climbed 11.6% quarter-on-quarter to $3.5 billion in Q3 2021, driven by the award of three GLS sites and the collective sale of Flynn Park. 

“The proportion of Good Class Bungalows and landed housing continued to dominate at 59% of total sales,” noted Colliers.

Year-to-date, residential sales volume increased to $8.1 billion, reflecting a 148% year-on-year hike from a low base, given that property viewings were prohibited for the most part of Q2 2020.

Meanwhile, commercial sales fell 12.1% quarter-on-quarter to $1.2 billion in Q3 2021, despite strong retail transactions. This brings year-to-date commercial sales volume to $361 billion, or down 12.6% from the same period last year.

Colliers said several commercial deals are still in the pipeline, including One George Street, 20 Anson and ABI Plaza, reflecting “the attractiveness of office properties with redevelopment and Gross Floor Area upgrade potential”.

Industrial investment sales also dropped 91.1% quarter-on-quarter to $178 million in Q3 2021 in the absence of big-ticket industrial sales or major deals.

Nonetheless, year-to-date industrial investment sales increased 66.9% year-on-year to $3.2 billion. This comes as the two previous quarters registered strong sales driven by a REIT privatisation as well as the establishment of an industrial fund.

“We believe investors interest should remain on the back of accelerated growth in ecommerce and technology businesses,” said Colliers.

Over in the hospitality sector, no movement in asset sales was registered in Q3 2021 and for the year-to-date period.

In the long term, however, Colliers expects the hospitality sector’s fundamentals to be supported by “a relatively limited supply pipeline and a series of new attractions and infrastructure projects planned through 2030”.

Shophouse sales declined 47.4% to $163 million in Q3 2021, following a strong showing in the previous quarter. With this, year-to-date shophouse sales volume stood at $607 million as at end-Q3 2021, or a whopping 238% hike over the same period last year.

“Shophouses continue to be an attractive asset class, as they offer a stable rental income and capital appreciation potential at a palatable investment quantum, as well as the flexible use of property,” said Colliers.

Looking ahead, Colliers expects investment deals to continue to be robust at least until the first half of 2022.

“Given the strong residential demand and depleting developers’ landbank, we expect collective sales to continue to grow. Separately, we are also seeing more investor interest in the suburban malls,” said Steven Tan, Executive Director for Investment Services, Singapore at Colliers International.

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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg

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