Despite the global economic uncertainty last year, Singapore’s real estate investments hit S$28.6 billion, surpassing the S$27.9 billion recorded in 2010, according to property deals tracked by DTZ.
The report only covered investments above S$5 million and excludes S$1.1 billion worth of deals which cover single residential units and lots which cannot be subdivided/redeveloped into more than one plot each.
DTZ revealed that last year’s increase in property investment was primarily attributed to a boost in sales of properties and land sites by the government, as government sales rose 28.8 percent year-on-year. This more than offset the 12.7 percent year-on-year decline in investment sales in the private sector.
Total investment sales jumped 67.5 percent quarter-on-quarter to S$7.2 billion in the fourth quarter, which was still less than the first (S$8.1 billion) and second quarter (S$9.0 billion).
Last year’s investment activity in the residential market was the largest, accounting for 37.5 percent of investment sales. Residential investment sales hit S$10.7 billion in 2011, a record since 2007, and the Government Land Sales (GLS) programme accounted for about 70 percent of total residential investment sales.
However, the proportion of collective sales in the residential investment sector dropped, with collective sales accounting for only about 26.9 percent of residential investments in 2011, against 65.6 percent in 2007.
Investments in the office sector were the second largest in 2011, amounting to S$6.9 billion.
Chua Chor Hoon, Head of Asia Pacific Research at DTZ, said, “Real estate investments are expected to be more subdued in 2012, due to the uncertain global economic outlook. Investments in offices are expected to fall due to the slowdown in occupier demand and projected fall in rents.”
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