The property investment sales last seen in 1998 have fallen to great levels, recording a 10-year low.
The total investment sales have yet totalled to $184.6 million during the Q1 of 2009, says CB Richard Ellis. The quarterly investment sales the last time recorded to be lower, which in the first quarter of 1998 at $49.28 million, and in the third quarter of 1998 at $110.62 million.
The figures in Q1 2009 investment sales also indicate a fall of 56.4 percent from the last quarter and a decline of 98 percent compared last year.
The most number of dealings was due to the sales from the residential division.
Total residential investment sales adding sales in Good Class Bungalow (GCB) have yet totalled to $95.1 million in transacted value or 51.5 percent of the quarter’s total investment sales. The figures show 60.7 percent lower than the residential investment sales of $241.79 million registered during the last three months of 2008.
The 20 percent of total residential sales is surprisingly due to the sale of only three GCBs.
The GCBs at 8 Queen Astrid Gardens, 28A Olive Road and 39 Cornwall Gardens were purchased for a total of $18.2 million. The GCB at 8 Queen Astrid Gardens was sold for $11.4 million last February. The figures show about 12.3 percent fall than the $13 million transacted previously about 19 months ago in July 2007.
Observing that property values have declined fairly at a slower pace as compared to the non-landed sector, CBRE director Douglas Wong, said: “Owners are still holding on despite the financial situation. And there are a lot of buyers waiting on the sidelines”.
The average prices of GCB are expected to fall by 10 percent in 2009 by CBRE.
Although no collective sales were gathered in the first quarter of 2009, Fragrance Properties acquired a 49,969 sq ft site located in Pasir Panjang along with two other units of strata-titled town houses measuring 2,680 sq ft each, totalling to $25 million acquisition cost.
The 41.9 percent or $77.3 million of total investment sales in the quarter is the amount gathered from the commercial investment market.
The amount of $900 per sq ft or $35.8 million on a 39,000 sq ft of gross floor area was the only major sale gathered, which was for the Le Mercier House situated at 65 Mohamed Sultan Road.
The 29 Loyang Crescent was the only property sold in the industrial sector, with an area of 83,367 sq ft site. It was sold for $74 per sq ft on land or $6.2 million in February. This deal added by 3.4 percent to the total of investment sales.
According to CBRE, the total investment sales for the current year might be a revisit of the 1998 levels, which was when the total yearly quantum turned up to $1.35 billion.
Jeremy Lake, CBRE executive director on investment properties, said: “As the market corrects and price expectations close, transaction volumes will pick up again”.