S$977b recorded in Q1 property investment sales
Singapore's property investment sales in the first quarter amassed S$977 billion, with the residential sector contributing a total of S$970 billion, according to Colliers International.
The commercial brokerage firm said this represents 37.8 percent of the total transactions recorded in the first quarter.
Commercial properties accounted for 23.1 percent or S$2.26 billion of the total investment sales, while mixed-use properties made up 18.8 percent or S$1.83 billion in the first quarter.
Although Q1 sales moderated from the S$12.26 billion generated in the previous quarter, it was still 67.9 percent higher than the level in the same period last year. This showed that the market fundamentals remained optimistic despite uncertainties.
Overall, a total of six residential sites were sold in the first quarter, including two sites for the Design, Build and Sell Scheme (DBSS) and a land parcel designated for executive condominium (EC) development. Four industrial sites, three hotel land plots, a land parcel for petrol station use and another site for a residential-cum-commercial development were also awarded by the government in the first quarter. These amounted to a total value of S$3.38 billion, slightly lower than the S$3.98 billion worth of sites sold by the government in the previous quarter.
Meanwhile, the total value of property transactions for the region dropped 44.1 percent quarter-on-quarter to US$6.1 billion in the first quarter, according to a separate report from DTZ Research, with Singapore accounting for 91.9 percent of the region's total investment value in Q1.
The number of transactions exceeding US$100 million dropped to 18 in the first quarter, from 23 transactions in the preceding quarter.
"We expect property investments in the region to pick up for the rest of the year, due to optimism in SEA's growth prospects," said Ms. Chua Chor Hoon, Head of SEA Research at DTZ.
"Singapore being a key city in the region with good economic fundamentals will continue to attract investments. Development initiatives, from Malaysia's Economic Transformation Programme as well as the establishment of the REIT structure in Thailand will also boost property investment opportunities in the region."
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