Savills: Real estate investment volume totals $24.7 bil in 2022, down 1% y-o-y

In 2023, Savills anticipates that the greater number of Government Land Sales (GLS) areas available, the $2.16 billion sale of Jurong Point, together with the sale of strata units at Thomson Plaza will certainly boost the baseline regular investment sales volume.

Non commercial revenues remained to account for the best significant sales price, composing 49.9% of total financial investment sales value last quarter. Nonetheless, sales within this section halved to $1.4 billion in 4Q2022. This was the second succeeding quarter of decline this part documented last year.

Investment profits market value in Singapore came in at $24.7 billion for 2022, a decline of 1% y-o-y, according to an investment statement by Savills Singapore. For 4Q2022, the market clocked $2.81 billion in investment sales, dropping 36.1% q-o-q– the 3rd continuous quarter of loss– due to decreasing market conditions, the information includes.

Savills projects full-scale investment sales value for 2023 to total $24 billion to $25 billion, and project to be damped by economic and interest rate headwinds.

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” Regardless of unfavourable economic as well as interest rate climate, provided the visibility of the market and also a positive viewpoint of Singapore, overall investment sales value need to still be adrift in 2023,” states Alan Cheong, executive head of Savills Research. “While greater borrowing expenses may hamstring establishments, there still remains the opportunity of a big-ticket agreement or a series of medium-sized transactions through this year.”

Meanwhile, reseller and commercial investment sales each declined 34.9% and even 48.1% q-o-q. Retail sales came off a relatively high base in 3Q2022 along with the last quarter of the entire year found a downtrend in retail industry strata sales and lower transaction values of shophouses.

The market segment observed a bounce back in negotiable activity, increasing 28.4% q-o-q to $1.02 billion in 4Q2022 after two successive quarters of downturn. The rebound is mostly connected to a 166.1% q-o-q development in workplace investment sales from $251.4 million in 3Q2022 to $668.9 million in 4Q2022, claims Savills.


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