Residential property investments in Singapore shot up 102 percent to $316 million in Q4 2014 from $156 million during the previous quarter, according to a DTZ report.
In the fourth quarter, there were several major deals such as Blackstone’s acquisition of 18 units at Paterson Suites for $83 million from Real Estate Capital Asia Partners.
There was also the reported sale of 48 units at Treasure on Balmoral by Hiap Hoe to its controlling shareholder Hiap Hoe Holdings for $185 million.
But most of the residential investments were undertaken by Chinese developers who actively bid for Government Land Sales (GLS) sites in Q4.
Nanshan Group Singapore was awarded a private residential site near Upper Thomson Road for $173.6 million, while an executive condominium (EC) site in Sembawang was awarded to Qingjian Realty for a bid of $229.4 million, about $21 million above the next offer.
Going forward, the report stated that residential investment sales are expected to slow down this year due to the soft market conditions.
“The government has hinted that the Additional Buyers’ Stamp Duties (ABSD) will not be removed barring a “meaningful correction” in the market in 2015. Together with the continued enforcement of the Total Debt Service framework, investors are likely to stay put until they receive clearer signals that the market has bottomed out,” DTZ said.
Meanwhile, investors and developers will continue to adopt more innovative ways to manage their portfolios.
For example, CDL has partnered with Blackstone’s Tactical Opportunities Fund and CIMB Bank Berhad Labuan Offshore Branch to invest in the cashflows of its properties in Sentosa Cove, shared Swee Shou Fern, DTZ’s Senior Director of Investment Advisory Services.
Image: Treasure on Balmoral condominium. (Source: Hiap Hoe)
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
