Singapore property investment market rakes in over $26b in 2021

This reflects a 10.4% year-on-year increase.

Singapore’s real estate market has attracted $26.2 billion worth of investments in 2021, a 10.4% increase from the previous year’s totals. 

According to Cushman & Wakefield data, total investment volume in Q4 2021 moderated to around $7.4b due to the lack of major Government Land Sale (GLS) sites sold during the quarter as compared to that in Q3 2021. 

Here’s more from Cushman & Wakefield:

The private residential market continues to be the main driver of investment sales, taking up 38% of Q4 2021 investment sales. Total residential investment volume declined to $2.8b in Q4 2021 as compared to $3.8b registered in the preceding quarter. The decrease was mainly driven by the lack of public residential deals as there was no residential GLS tender closing during the quarter while four residential GLS sites were sold in Q3 2021 for around $1.7b. 

On the other hand, private residential investment sales went up by almost 29% to $2.8b in the last quarter of 2021 from $2.2b seen in Q3 2021 as developers ramped up their land acquisition activities to replenish their landbanks. Land parcels at Thiam Siew Avenue were sold for $815 million (m) to a joint venture between Hoi Hup Realty and Sunway Developments. 

The residential collective sale market also witnessed major deals such as the sale of Watten Estate Condominium and La Ville for $550.8m and $152m, respectively. Both developments were transacted above their initial guide / asking prices following keen interests from developers. 

The government announced another round of cooling measures which took effect from 16 December 2021 to prevent the market from overheating. Following the new measures, the residential collective sale market is expected to cool as developers become more cautious and selective in their land acquisition activities. Nonetheless, the residential collective sale market could still pick up, albeit at a much slower pace, as unsold inventory remains low and developers are still looking to replenish their landbanks.