Outbound property investment from Singapore drops 39.1% to S$3.2b in Q3

More activity is expected by the end of the year.

With the ongoing global tensions and high interest rates, outbound investment activity from Singapore slowed down to S$3.2 billion according to MSCI Real Assets. 

“This represented a quarterly decrease of 29.3% and yearly decline of 39.1%. However, the announcement of interest rate cuts by the Fed is expected to spur more activity before the end of the year,” said Knight Frank in a report.

Here’s more from Knight Frank:

The first of the interest rate cuts will be the stimulus for deals that were simmering to surface, with a positive carry narrative emerging for properties currently in due diligence. More industrial deals can be expected, as well as in the living sectors (particularly serviced and co-living residences) as tourist and transient cross border worker volumes increase. 

While the collective sales arena remains challenging, commercial and mixed-used developments have a higher chance of success in the prevailing market conditions. 

Investment sales momentum is expected to improve in the coming months with the annual total projected to fall within Knight Frank’s S$23 billion to S$25 billion target.