The amount investors have put into the Singapore property market has more than doubled last quarter. In Q3, real estate investment sales rose from the $6.7 billion in the previous quarter to $16.7 billion.
Real estate investments more than doubled in Q3
Most of the investments came from the commercial sector, while the rest came from the industrial, residential, and hospitality sectors. The amount that was put into these sectors was $6.72 billion, $4.07 billion, $3.03 billion and $2.92 billion respectively. The volume of real estate investments in Q1 and Q2 combined also rose 49%.
DUO Galleria aerial shot by Ole Scheeren © Buro-OS Photo by Iwan Baan
Some of the largest deals came from the transactions of office spaces. The largest transaction came from the acquisition of Duo Tower and Galleria for $1.58 billion or $2,750 psf. The latter is in Bugis and yet another deal also made in the Bugis area was for Bugis Junction Towers for $547.5 million or $2,200 psf. The growing popularity and redevelopment of the Bugis, Ophir and Rochor districts could be reasons behind these recent rises in interest and demand for spaces in the district.
Bugis Village. Picture: iProperty
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Singapore’s stable fundamentals attract foreign funds
The commercial market has been tight this year and though it may be tempting for landlords to chase price gains, the widening gap between sellers’ and buyers’ expectations may have other consequences. Analysts are however hopeful that foreign funds will continue to flow into the market as long as Singapore maintains her stable political and socio-economic environment.
As a gateway city to many other countries and markets in the region, Singapore, for now, has the advantage of providing investors with stable fundamentals which aid in market expansion.
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