Singapore real estate investment volumes decline 11% to $3.2b in Q2

The residential sector accounted for 40% of the transactions. 

Singapore’s total real estate investment volumes in Q2 2023 fell 11.0% to $3.2b in Q2, marking the second consecutive quarter of decline. 

According to Cushman and Wakefield, the bulk of transactions was driven by the residential ($1.3b) sector, followed by industrial ($0.8b) and commercial ($0.6b) sectors. A total of $6.7b worth of deals was recorded in 1H 2023, a nearly 70.0% hoh decline compared to 1H 2022 ($22.2b). 

Here’s more from Cushman and Wakefield:

The latest round of cooling measures, which took effect from April 27, saw an increase of the Additional Buyer’s Stamp Duty (ABSD) rates for most home buyers. Notably, the ABSD for purchase of any residential property by foreigners have doubled to 60%. While investment sales volumes have slowed across most sectors, the industrial and shophouse sectors continued to attract higher levels of interest from investors and recorded quarterly increases in transaction volumes. 

The award of tender for the Lentor Gardens Government Land Sales (GLS) site to GuocoLand and Intrepid Investments for $486.8 million (m) was the largest deal in the quarter. The industrial market witnessed two notable deals, namely, the portfolio sale of five properties by ESR-Logos REIT for $313.5m and CapitaLand Ascendas REIT’s acquisition of The Shugart for $218.2m. 

A flurry of transactions were recorded at Solitaire on Cecil, an upcoming strata office development in the CBD, which was fully sold less than three months after its launch. Each floor was sold in excess of $50 million, or above $4,000 psf. Buyers were mainly private wealth with high net-worth individuals and family offices, who are able and willing to finance deals with cash or little debt.