
SG property investment sales recover to pre-COVID levels: Colliers
Investment sales surged to 86.3% in the second quarter despite tightened restrictions.
Real estate investment sales rocketed to a 171% growth year-on-year, at $9.6b, for the first half of 2021, according to a report by Colliers.
This puts Singapore real estate investment sales back to pre-COVID levels, higher than the $8.9b registered in the first half of 2019.
For the second quarter, investment sales grew by 86.3% quarter-on-quarter (QoQ), driven by industrial assets.
“We expect sales to remain strong in the second half (H2) of 2021, supported by Singapore’s safe-haven status, pro-business environment, and economic growth,” Colliers said.
Industrial investment sales saw a massive 105% boost QoQ, to $2.0b, driven by the privatisation of Soilbuild Business Space REIT and Ascendas REIT’s purchase of a 75% state in Galaxis. Colliers expects positive long-term growth in warehouses, data centres and high-spec space to go hand-in-hand with e-commerce and technology growth.
Commercial sales were up 23.9% QoQ, as more tech giants continue to set up base in Singapore.
The revival of public and private land sales led residential investment sales to grow by 96.4% QoQ, to $3.1b. Colliers expects collective sales to recover in 2021.
Shophouse sales saw a rebound to 132% QoQ growth, at $310m, after declining by 56.3% in the previous quarter.
"As Singapore accelerates its vaccination program to immunise 75% of its population by early October and at least two-thirds by 9 August 2021, we can expect further easing measures in H2 2021 and a brighter outlook for investment sales over the next few years," said Colliers' Senior Director, Capital Markets, Capital Markets and Investment Services Ling Wei Kong.
Commentary
Revenge Tourism is the New Direction of Travel for Asia