Singapore’s total property investment sales hit $ 4.4 bil in 3Q2020, down 55% y-o-y

Total property investment sales in Singapore across all sectors hit $ 4.4 billion in 3Q2020, 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 Covid19 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 Byte

Dance looking to set up in Singapore is just the beginning of the potential demand coming from China-based technology companies, Knight Frank says.

The residential sector showed resilient demand from the Good Class Bungalow (GCB) segment, with deals amounting to $128.3 million in 3Q2020. This comes close to reaching the $166.4 million recorded in 1H2020. 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 3Q, 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). —