Thursday, April 05, 2012

Regional private investors to remain active in property market

SINGAPORE: Private investors from Malaysia, Indonesia, Taiwan and Singapore are expected to remain active in the investment market despite lower sales volume in the first quarter of 2012, according to real estate consultancy CBRE.

It said total investment sales hit S$4 billion in Q1, down 53 per cent on-year and 49 per cent shy of the fourth quarter's figure.

CBRE attributed the slower private investment sales to the weak global capital market sentiment and the introduction of cooling measures like the Additional Buyer's Stamp Duty (ABSD) by the government last December.

The ABSD was aimed at moderating demand for private homes by foreigners.

CBRE said this has affected investment sales for high-end residential properties.

However, CBRE noted that mass market projects remained popular, prompting developers -- especially from China and Malaysia -- to place more aggressive bids for land tenders.

The first quarter also saw a drop in enbloc sales.

CBRE said there were six enbloc deals amounting to S$454.6 million, a decline from the S$669 million worth of deals inked the previous year.

Overall, the residential property segment made up 64 per cent of the total real estate investments in Q1.

CBRE said investment sales in the office sector also fell by 67.6 per cent on-year to S$581.4 million.

However, demand for strata commercial space remained strong, particularly those in the price range of S$1 million to S$5 million.

Petra Blazkova, head of CBRE Research, Singapore and South East Asia, said: "Strata-titled office units remained highly sought-after by private companies, high-net worth individuals and other investors switching from the residential sector following the introduction of cooling measures.

"Financing for strata-titled deals remains easy to obtain and this sector will continue to witness plenty of activity this year."

View the original article here

Source From Channel News Asia

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