Singapore real estate investment sales to hit up to S$25b this year

Investments are expected to gain momentum in H2 2024.

According to Knight Frank, market sentiments continue to remain at muted levels as buyers and investors continue to wait for interest rates to drop, and/or for prices to be rerated. 

As the hospitality and retail sectors show the greatest potential due to normalising tourist patterns, deals waiting in the wings can be expected once interest rates show signs of decrease. 

Here’s more from Knight Frank:

Although residential collective sales will remain difficult, landed housing plots for redevelopment of landed homes in good locations will continue to be sought after by boutique developers with landed homebuyer demand consistently healthy. 

There is every chance that deals can materialise in an environment where there are currently more sellers than buyers, once interest rate cuts begin that cause the expectations between buyers and sellers to narrow. This could set off the deals that are simmering below the surface. As such, investment sales momentum could improve in the second half of 2024, bringing the annual total to the projected range of S$23 billion to S$25 billion.