Friday, July 13, 2012

Q2 property investment sales pick up steam

Singapore’s property investment sales market rebounded strongly in Q2 2012, with all sectors seeing growth, according to the latest report from Colliers International on the investment sales market.

Total investment sales value jumped almost 89 percent to S$8.9 billion in Q2 2012, up from S$4.71 billion in Q1. This brings the total investment sales value for 1H2012 to S$13.61 billion.

The rebound was most visible in the private sector, with an impressive 131.1 percent surge from S$2.51 billion in the previous quarter.

“The upsurge in private sector sales was fuelled by the conclusion of 10 big-ticket deals (worth above S$100.00 million a piece) amounting to S$2.41 billion, compared to only three such transactions sealed in Q1 2012 totalling S$774.00 million,” said Colliers.

The report also noted that apart from a pick-up in large-ticket deals, the commercial sector saw strata-titled office sales more than quadruple from S$102.03 million in Q1 to S$485.03 million in Q2.

“The mixed-development sector was also rife with activity, culminating in the sealing of four big ticket deals among others,” added Colliers.

Due to the prominence of large deals, the mixed-development sector saw about S$1 billion in investment sales, which is almost triple the previous S$350.69 million.

In addition, residential investment sales was dominated by the public sector, with a total of S$2.66 billion which Colliers attributed to “developers’ sustained optimism towards the residential market given that the winning bids were still generally bullish in spite of thinning interests observed for sites with weaker locational attributes”.

Colliers reported that total investment sales in the residential sector reached S$4.76 billion during the period, 78.9 percent higher than the S$2.66 billion seen in Q1.

In fact, the sector remained the largest contributor to investment sales with a hefty 53.5 percent share.

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