Investment sales rebound across Singapore’s real estate sectors in 2Q2021

SINGAPORE (July 23): Singapore’s residential market climbed 96.4% q-o-q to S$3.1 billion (RM9.63 billion) in 2Q2021, on the back of strong tenders for government land sale sites and positive buying sentiment in the resale and new launch market, according to a Colliers investment report. Private land sales through collective sales are also set to recover later this year, says Colliers.

The last quarter also saw shophouse transactions rebound by 132% q-o-q to S$310 million, after the sector declined 53.6% q-o-q in 1Q2021. Meanwhile, commercial sales rose 24% q-o-q on the back of several major deals.

Local industrial investment sales jumped 105% q-o-q to S$2 billion in 2Q2021, according to the Colliers report. Big-ticket industrial property sales are also expected to remain buoyant, with long-term growth in warehouses, data centres and high-specs space.

The strong performance of the logistics and industrial sector in Singapore was echoed throughout the Asia Pacific region.

In its Asia Pacific Capital Tracker report, JLL says real estate investments in logistics and industrial assets spearheaded the rebound in total investment volume in Asia Pacific in 2Q2021. Logistics and industrial investments surged 215% y-o-y last quarter to US$15 billion (S$20.53 billion). This was supported by favourable demand dynamics from regional e-commerce expansion.

Regional office demand also firmly turned the corner in 2Q2021 to reach US$15.5 billion in investment transactions. Demand was buoyed by positive net absorption from Australian CBD office markets, as well as a more positive outlook in Singapore and Shanghai.

“We expect logistics and industrial investments to double to US$50 billion to US$60 billion by 2025, while at the same time, investors are seeing signs that office markets are stabilising,” says Regina Lim, head of capital markets research, Asia Pacific, of JLL.

She expects overall investment volume in the region to rise by 15% to 20% for the whole of 2021.

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