Real estate investment deals in Singapore at $3.8 bil in 1Q2021: Knight Frank
Real estate investment sales in Singapore amounted to some $3.8 billion in 1Q2021, representing an uptick of 26.7% y-o-y from $3.0 billion in 1Q2020, according to Knight Frank research.
The residential sector retained momentum, raking in some $1.7 billion of investment deals at the start of 2021. In particular, the Good Class Bungalow segment “continued to draw strong interest”, it
adds, pointing to the sale of a GCB at Nassim Road for $128.8 million, or $4,005 psf on land area, in late-March.
Developers also acquired land banks through partnerships, like the collective sale of Surrey Point for $47.8 million by an Amara Holdings joint venture, and the purchase of two residential plots at Institution Hill for $33.6 million through a consortium comprising Macly Group, Roxy-Pacific Holdings and LWH Holdings.
In 1Q2021, the commercial and shophouse sectors also recorded $1.2 billion of investment deals. Such deals included the acquisition of a 50% interest in OUE Bayfront by Allianz Real Estate for $633.8 million, and in Certis Cisco Centre by RBC Investor Services Trust Singapore for $150 million.
Notable deals in the strata office and shophouse space included the transactions of shophouses at Teck Lim Road for $22.3 million and Mosque Street for $21.5 million, as well as strata office units on the 22nd floor of The Central for $41.7 million.
Meanwhile, industrial sector growth more than doubled over the quarter, recording $906.1 million of investment purchases, states Knight Frank. “With e-commerce set to stay and grow beyond its current levels, the demand for logistic spaces is envisaged to continue to increase to cater to the expanding inventory,” it says.
“As sentiments have generally improved across
the globe, we envisage capital outflow to expand due to the availability of more opportunities overseas,” it adds.
Knight Frank says that in the local real estate market, “while sales activity has picked up, the stock of investment properties put up on the market is limited as most sellers are holding on to their assets, anticipating that these properties would be able to fetch a better price in the near future, given
that economic recovery seems more certain”.
In the investment market, it therefore expects to see more partnerships, particularly in the purchase of land.
PropNex acquires PropTech platform Ovvy
Singapore-listed real estate agency PropNex has acquired a 70% stake in Ovvy, a tech platform that will allow its agents to provide valueadded services to its clients.
PropNex salespersons will be able to provide further services via Ovvy’s hundreds of merchants that are currently on the platform. For instance, consumers can post a job (such as for air-conditioning repair services), get offers, filter through merchants, and “book and pay” merchants based on their needs.
“The group is constantly upgrading our technological capabilities and now employs online platforms to further enhance real-time connectivity among our salespersons and their clients,” says Ismail Gafoor, co-founder, executive chairman and CEO of PropNex.
“We believe with this acquisition, PropNex salespersons can provide a more holistic support for their clients, landlords, tenants and home investors, especially on the after-service care and maintenance of their clients’ investments,” he adds.
Gafoor says: “Through technology, we intend to stay ahead of the curve in terms of innovation and transform the digital landscape in the real estate industry for the betterment of our salesforce.”
KSH wins $171.8 mil design and build contract for Biopolis project
Developer KSH Holdings has clinched a $171.8 million design and build contract under Biopolis Phase 6 development in one-north and works at the adjacent Buona Vista Node of the rail corridor from HB Universal, a wholly owned subsidiary of Singapore-listed Ho Bee Land.
For the project, KSH will construct the Biomedical Sciences development comprising a 12-storey tower block with two basement carparks, and rail corridor works at North Buona Vista Drive (Queenstown Planning Area).
The proposed Biomedical Sciences project is part of the latest development in one-north, and signifies the Singapore government’s commitment to establish the city-state as a global R&D hub, says KSH. Works on the project are expected to start this month, and be completed within 27 months.
With the project, “our order book is now lifted to over $615.0 million with a desirable ratio of 56:44 in terms of private and public projects”, comments Choo Chee Onn, executive chairman and managing director of KSH.
Knight Frank appoints Christine Li as head of research, Asia Pacific
Knight Frank has appointed Christine Li as head of research, Asia Pacific, based in Singapore.
In her new role,
Li will oversee the research teams across the region in forecasting key trends and bringing quality insights to clients across the office, industrial and residential sectors as well as specialist asset classes such as student accommodation, multi-family and data centres.
She will also provide an Asia Pacific perspective on Knight Frank’s flagship global reports such as The Wealth Report, Active Capital and (Y)OUR SPACE.
Li joins Knight Frank with over 15 years of industry experience delivering research and strategic analysis for both commercial and residential real estate markets. Previously, Li was the head of research, Singapore and Southeast Asia, at Cushman & Wakefield.
Prices for HDB resale flats rise 2.8% q-o-q in 1Q2021: flash estimates
Prices for HDB resale flats rose by 2.8% q-o-q in 1Q2021, according to flash estimates released by the HDB.
HDB resale prices are now inching closer to the peak price in 2Q2013, observes Sun. Prices last quarter were just 5% lower than the highest price recorded in 2Q2013, she adds. “At the current pace of price growth, a new peak may be formed by the second half of this year.”
In 1Q2021, average prices rose q-o-q in 22 of the 26 towns, Sun highlights, based on HDB data as at March 31. HDB units in the neighbourhoods of Toa Payoh (17%, 244 units), Bukit Timah (11.2%, 28 units) and Bedok (8%, 402 units) posted the highest quarterly increases in the quarter.
She also predicts that 2021 will see a new record number of million-dollar flat sales, surpassing last year’s cumulative total of 82 units. Last quarter, 53 resale flats changed hands for at least $1 million each, marking the highest quarterly sales of million-dollar flats on record since 1990.
“Rising flat prices generally bode well for sellers as it is now more favourable for some flat-owners to ascend the property ladder. Seller expectations may continue to rise in the coming months and some may ask for higher prices,” says Sun.
“Demand for resale flats is expected to remain strong and some locations are seeing a supply shortage,” she notes, adding that “in light of the strong demand, prices of resale flats are expected to trend higher this year”. — Compiled by Charlene Chin