In Q1 2021, total investment sales for commercial properties increased 47.9% year-on-year to $3.8 billion.

Colliers International expects property investments in Singapore to recover to pre-pandemic levels in the coming quarter, supported by Singapore’s pro-business environment, safe-haven status, and economic growth, Singapore Business Review (SBR) reported.

In Q1 2021, commercial volumes excluding real estate investment trust (REIT) mergers grew 43.8% year-on-year as investor confidence returned with the reopening of the city-state’s economy, said Jerome Wright, Senior Director for Capital Markets at Colliers International.

“Commercial assets, especially Grade A office buildings, remain attractive as more tech giants set up bases in Singapore, and potentially leveraging on the URA Incentive Scheme,” he noted as quoted by SBR.

The hike in commercial volumes comes as total investment sales increased 47.9% year-on-year, ex-mergers and Government Land Sales (GLS), in Q1 2021 to $3.8 billion.

Industrial investment sales also rose 141% quarter-on-quarter to $976 million in Q1 2021, boosted by the establishment of a 14-property $469 million Boustead Industrial Fund as well as the $142 million sale of high-specification light industrial building, Admirax.

Meanwhile, lower residential investment sales were registered in Q1 2021 due to the absence of GLS.

However, excluding GLS, residential investment sales rose 154% year-on-year to $1.6 billion.

“Foreign investors’ confidence in Singapore’s real estate market is very strong, the sale of all 20 units at the completed freehold luxe condominium, Eden, for $293 million to the Tsai family of Taiwan is a great testimonial,” said Steven Tan, Senior Director of Investment Services at Colliers International, as quoted by SBR.

Source: CommercialGuru, 16 Apr 2021