Property investment sales slipped in the second quarter, according to separate estimates by Savills Singapore and CB Richard Ellis (CBRE).
Both firms attributed this to slower sales involving private-sector sellers, although this has been eased by an increase in Government Land Sales (GLS).
Savills, however, noted that overall sales momentum is estimated to rise again over the next three to six months, as most real estate funds that have raised fresh capital are on the lookout for purchases in Asia, including Singapore.
The property consultancy expects total property investment sales (covering both public and private sectors) in Q2 to have amounted to approximately S$6.9 billion and that the final number could be around S$7.3 billion. This represents a decrease from S$8.3 billion in the previous quarter but exceeds the S$6.08 billion in Q2 2010.
CBRE’s figures also revealed that total property investment transactions for Q2 stood at S$7 billion, with the final figure estimated to hit S$7.5 billion, down from S$8.37 billion in Q1 2011.
In addition, Jeremy Lake, CBRE Executive Director of Investment Properties, estimates approximately S$30 billion in total investment deals towards the end of 2011, similar to the $29.07 billion in 2010.
“Domestic players’ appetite for real estate remains strong, and we’ll also continue to see interest from foreign investors including funds. They like the transparency, level playing field, liquidity and ease of financing. And Singapore remains a growth hub within Asia,” Lake said.
“Any fund investing in Asia will have Singapore in its portfolio, and probably a reasonable chunk (allocated). It ticks all the boxes.”
Steven Ming, Savills Executive Director and Head of Investment Sales, also predicted stronger transaction flow for the third quarter, as several property funds have raised fresh capital and are once again on the acquisition trail.
“Asia and Singapore continue to be the darlings of international and regional real estate investors, given the strong economic fundamentals. Local high networth investors who are ‘long’ on Singapore are also seeking suitable acquisitions,” Ming said.
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