Property investment activity in Singapore fell 50 percent in the first quarter to S$3.7 billion, from S$7.4 billion the previous quarter, according to the latest report by DTZ Research.
The sudden decline in real estate investment activity was mainly attributed to a weaker property market, rising business costs and global economic uncertainties, said the report.
DTZ noted that the lack of industrial sites launched for sale contributed to the decline in government sales to S$2.2 billion in Q1 this year, from S$3.0 billion recorded in Q4 last year. Meanwhile, investment deals in all major property segments also dropped in the private sectors, reflecting an anticipated softening of the market.
Despite the Additional Buyer’s Stamp Duty (ABSD) imposed last year, DTZ said collective sales stayed steady, with six collective sales transacted in Q1 at below S$200 million each. The biggest collective sales deal seen during the period was the sale of Tai Keng Court at S$161.1 million.
Meanwhile, local investors continue to dominate the property investment market, accounting for around 80 percent of the transactions in the first quarter, while foreigners, mostly within other Asian countries, were mainly drawn to the residential property sector.
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