Singapore saw property investment sales increase 16.9 percent to $4.068 billion in Q2 2015, reported Singapore Business Review citing CBRE Research.
However, private sector investment – which is usually the driving force behind property investment sales – took a back seat during the second quarter as the pricing mismatch between sellers and buyers intensified, CBRE said.
In fact, the private sector secured only 37 smaller-quantum deals in Q2, which accounts for 32.9 percent of overall investment during the quarter.
The report noted that this is a reversal from what was seen during the last three quarters when the private sector dominated property investment sales.
Buoyed by the $1.67 billion sale of a Paya Lebar/Sims Avenue site, public sector deals accounted for 67.1 percent of total investment at $2.729 billion.
Looking ahead, CBRE expects private transaction volumes to drop further given the limited stock of properties for sale.
“The sale of institutional-grade properties are aimed at core buyers who have the ability and liquidity to ride through the uncertainty in the short to medium term,” added the report.
As such, CBRE expects the investment volume to remain subdued over the next six to 12 months.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
