Singapore real estate investment sales to hit S$18 to S$20b this year

This is adjusted from the previous projection of S$20-S$22b.

In the coming months, Knight Frank said Singapore’s capital markets space will be characterised by investors on the search for assets being primarily focused on adding value to the properties to achieve higher returns. This is to justify the higher borrowing costs involved with the acquisition of the property. 

“While the industrial sector will remain the hunting ground for core acquisitions, other investors currently in the process of discovery are increasingly observed to be prepared to move up the risk curve for commercial properties to obtain higher returns, and this can include taking the enhancement and redevelopment route,” analysts said.

Nonetheless, given the tentative pace of investment activity and prevailing challenges in the Singapore property market, Knight Frank expects a continued slowdown in the remainder of 2023. Total investment sales for 2023 are expected to add up to a more conservative S$18 billion to S$20 billion compared to the S$20 billion to S$22 billion previously projected.