Residential sector leads Singapore’s Q2 property investment sales

Its $3.3b worth of transactions accounted for 49% of overall sales. 

Singapore’s real estate investment activity was lacklustre in the second quarter of the year, with investment sales dropping 32% qoq. This significant decline came after the market achieved a 2-year high the previous quarter. 

According to a report from Edmund Tie, the residential sector led the investment sales in the quarter, contributing to $3.3bn (49%), followed by the retail sector contributing to $1.38bn (21%). The bulk of total residential sales was led by the public investment sales market. 

Here’s more from Edmund Tie:

The public investment sales market recorded nearly $2bn from the Government Land Sales (GLS) Programme, comprising two residential sites, at Pine Grove (Parcel A) and Dunman Road. 

Caution prevailed in the public land sales segment. Both sites (Pine Grove (Parcel A) and Dunman Road) received a lower than usual number of bids, indicating that developers are cautious on the increasing economic and market risks, choosing to be strategic in their bids. 

The collective sale market remained active and maintained momentum going into the quarter with the sale of Golden Mile Complex and Lakeside Apartments. Several residential sites were recently launched or relaunched for tender, including Elizabeth Towers, Euro-Asia Apartments and Kensington Park. 

In the second half of 2022, we anticipate investment transaction volumes to maintain its current momentum. The easing of border restrictions and ongoing geopolitical uncertainties will see capital gravitating towards the Singapore real estate market as a safe haven.