Singapore’s total property investment sales hit $4.4 bil in Q32020, down 55% y-o-y

SINGAPORE (EDGEPROP) - Total property investment sales in Singapore across all sectors hit $4.4 billion in Q32020, representing a 55.1% y-o-y decline.

However, both interest and activity in the real estate market have picked up considerably since the easing of Covid-19 restrictions, particularly from the commercial sector, notes Knight Frank.

This includes the sale of a 50% stake of Frasers Property’s Northpoint City (South Wing) to TCC Group for $550 million, as well as the sale of Robinson Point by Tuan Sing Holdings for $500 million.

Foreign investors have also expanded their operations in Singapore. The likes of Alibaba acquiring a 50% stake in AXA Tower earlier in May and ByteDance looking to set up in Singapore is just the beginning of the potential demand coming from China-based technology, Knight Frank says.

The residential sector showed resilient demand from the Good Class Bungalow (GCB) segment, with deals amounting to $128.3 million in Q32020. This comes close to reaching the $166.4 million recorded in H12020. Key transactions included the sale of GCBs along Garlick Avenue, adds the research consultancy.

The industrial sector registered a total of $406.6 million. Transactions include a warehouse at 7 Bulim Street by Titan (Wenya), which was sold to AIMS APAC REIT for $129.6 million, and a business park development at 26A Ayer Rajah Crescent by Mapletree Industrial Trust, which was purchased by Equinix Singapore for $125 million.

There were no transactions in the public sector in Q3, as no sites were sold under the Government Land Sales programme.

Meanwhile, Singapore outbound investment sales totalled $2.8 billion in the third quarter, contracting 24.3% y-o-y from $3.7 billion in the same period last year. Key deals include the acquisition of a residential development site in Shanghai by a joint venture between Yanlord Land Group and Huafa Industrial Zhuhai for approximately $0.9 billion (RMB4.5 billion) as well as the purchase of Pinnacle Office Park in Sydney, Australia, by Keppel REIT for $303.3 million (A$306.0 million).