Property investment sales achieved approximately S$3.8 billion in the third quarter of this year, down 55 percent from S$8.5 billion in Q2, according to the latest figures from Savills Singapore.
While the industrial sector dominated investment sales in Q3, the office and residential markets posted sharp falls. Only two office blocks were sold in Q3 — 182 Clemenceau Avenue for S$74 million and RCL Centre at Keppel Road for S$175 million, both to Asia-based private investors.
“Weaker prospects for the US and eurozone economies, coupled with the volatile stock market, have dampened market sentiments from both developers and fund / individual investors,” said Savills.
The group estimated that investment sales in Q3 will end up at approximately S$4 billion to S$4.2 billion.
It added that investment sales in Q4 will reach between S$4 billion and S$6 billion, while 2011’s full-year investment figures will reach S$25 billion to S$27 billion.
“The investment market is likely to stay muted for the rest of the year, especially as we enter into the year-end festive / holiday period,” said Steven Ming, Savills Executive Director.
As of 21 September 2011, industrial investment sales (excluding GLS sites) have totalled S$1.07 billion, about 2.5 times the S$418.6 million in Q2 and accounting for around 28 percent of the total S$3.8 billion in investment sales for Q3.
The two largest transactions were JTC Corporation’s divestment of two tranches of properties totalling S$688.6 million and the sale of 11 blocks of flatted factories and amenity centres to Mapletree Industrial Trust for S$400.3 million.
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