Singapore property investment
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Singapore property investment transaction wrapped 2022 at a stronger note though sales dropped in Q4

Investment sales of Singaporean real estate, which include large-scale transactions costing at least S$10 million, slowed down in the fourth quarter.

The real estate investment deals totalled S$4.5 billion in the most recent quarter, a 22% decrease compared to the quarter. However, Singapore property investment sales were S$31.9 billion in 2022, up 20.4% from S$26.5 billion in 2021.

The commercial transactions made up a sizable share of the total sales value through 2022.

Decline in Singapore property investment 

Due to a shortage of high-ticket sales, office investment sales fell 32.2% quarterly and 63.8% annually in Q4, according to CBRE. Among the transactions were the sale of a 50% share in Lazada One in Bras Basah and the purchase of smaller strata office spaces by non-real estate corporations or private people for personal use or investment.

The full-year office investment sales were S$7.3 billion, up 53.6% from 2021 and the largest since 2016. It was despite the slowdown in the second half of 2022.

According to CBRE, Singapore property investment sales in Good Class Bungalows (GCBs) and luxury flats decreased in value in 2022, which more than offset an increase in GLS sites.

A drop in the residential market is also noticed. According to the head of capital markets at Knight Frank, there won’t be any residential collective sale sites auctioned in the central area in 2022.

As long as sellers’ price expectations are reasonable and are assessed to a level within the risk profile of developers, more launches with higher success rates can be anticipated in 2023.

Given the rising interest rates, persistent inflation, and the consequent economic upheavals, Knight Frank warned that the overall investment sales atmosphere continues to be difficult.

In the first half of 2023, the reduction in Singapore property investment activity will likely persist until there is more solid evidence of economic stabilisation and improving business circumstances.

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I am Tyson Yuk, the founder of the blog Commercial Realty Singapore. With over 15 years of experience, my forte is in the commercial and luxury property line. With my blog, I aim to educate, advise and share tips and tricks with potential property buyers and investors to help them make successful property ventures.

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