Total investment volume (by quarter)
Residential and industrial investment sales rise 26% in 2Q2021: CBRE
Preliminary real estate investment volume in Singapore for the first six months of 2021 stood at $9.17 billion, according to CBRE Research. This figure is already 78.8% of the real estate investment volume in 2020. The volumes take into account real estate transactions above $ 10 million only.
The second quarter of 2021 generated investment volume worth $5.11 billion, which is a 26% q-o-q increase. The increase is largely attributed to residential and industrial transactions.
Residential investment sales climbed 64.6% q-o-q to $2.65 billion, mainly due to the sale of Government Land Sales (GLS) sites at Northumberland Road, Ang Mo Kio Avenue 1, and Tengah Garden Walk (an executive condo site).
Excluding government land sales, residential sales in the last quarter raked in $1.42 billion. This was attributed to strong activity in the luxury apartments and Good Class Bungalows markets.
“The active real estate investment sales scene in Singapore indicates that there is abundant liquidity waiting to be deployed, and investors are undeterred by the travel restrictions and the recent heightened measures,” says Michael Tay, CBRE head of capital markets, Singapore.
He adds that technology, in the form of virtual viewings and presentations, has helped significantly to facilitate deals.
“There has been little or no signs of distress, with prices supported by the macro-stability and effective handling of the pandemic by the Singa
pore government,” says Tay. Investors are also banking on Singapore’s projected recovery on the back of a calibrated reopening strategy, vaccination roll-outs, and the gradual lifting of travel restrictions, he says.
URA launches tender for white site at Marina View
The public tender for a white site at Marina View was launched on June 28 by URA. The plot is intended for a future mixed-use development with residential, hotel, commercial, or serviced apartment elements.
It was on the Reserve List of the 1H2021 Government Land Sales (GLS) programme. On June 10, URA announced that it had received an application from an undisclosed developer, along with a bid of $1.508 billion, to trigger the site for sale. The land rate translates to $1,378 psf per plot ratio (psf ppr).
The site first appeared on the Reserve List in 2011 but was removed in 2015 for a planning review. It reappeared again on the 2H2018 Reserve List and remained available until it was triggered.
“The Marina View site has the potential to become a trophy project for a developer in the heart of downtown Singapore and we expect it to garner keen bidding interest. Given the sizeable financial commitment required for the site, developers may join forces to bid for it via a joint venture to manage risk,” says Ismail Gafoor, CEO of PropNex.
The last GLS white site in the Marina Bay area was in Central Boulevard and was awarded to IOI Properties for about $2.57 billion ($1,689 psf ppr) in November 2016. At the time, the tender attracted seven different bids.
“Compared to the Central Boulevard site — which is primarily an officeretail development — we think developers may be more interested in the Marina View plot as it gives them the opportunity to capitalise on the relatively limited supply of residential units in this prime location,” says
Wong Siew Ying, head of research & content of PropNex.
She expects five to eight bids for the white site at Marina View, with a top bid of between $1,650 and $1,750 psf ppr. This could translate to a land bid price of $1.8 billion to $1.91 billion.
Marcus Chu steps up as APAC Realty CEO
APAC Realty, the parent company of local real estate agency ERA Realty Network, has announced that Marcus Chu has been promoted to CEO, with effect from July 1. He was COO and replaces Jack Chua, who remains with the company as executive chairman and provide strategic leadership and overall executive responsibility.
According to a press release on June 28, the separation of APAC Realty’s company chairman and CEO roles will enhance the real estate agency’s corporate governance and allow for effective oversight by the board.
“Today’s leadership transition is the outcome of our strategic succession planning programme which seeks to develop and elevate the next generation of leaders from our internal talent pool. Marcus has played a critical role in the group’s growth and achievements, and we are confident that he has the
right attributes to lead and advance our strategic growth plans for Singapore and the region,” says Chua.
As COO, Chu was responsible for the daily operations of ERA Realty, its strategic direction and core functions including human resource, recruitment, training, corporate communications, and research & innovation. He
also oversaw the launch of PropTech innovations and initiatives for ERA agents.
The new COO of agency business at ERA Realty is Thomas Tan, who has over 18 years of experience in the industry and is the key executive officer of his own agency, RE Training & Consultancy. He was president of the Singapore Estate Agents Association until May 2021.
Chu says he will be working closely with Chua and other team members to strengthen APAC Realty’s competitive position and unlock new opportunities in Singapore and the region.
APAC Realty boasts more than 17,600 real estate advisers in 651 offices located in 10 countries in the Asia Pacific region.
Juvena Lim joins Colliers as director of valuation & advisory services for Singapore
Colliers has announced that Juvena Lim has been appointed director of valuation & advisory services for Singapore from June 28. She is tasked with mortgage valuation and growing the consultancy’s valuation market share in the local market.
Lim has more than 15 years of commercial real estate experience in valuation. She is based in Singapore and reports to Joseph Yee, executive director, valuation & advisory services, Singapore, at Colliers.
“The recent pandemic has accelerated Singapore property market’s trends, and I see great opportunities to grow the mortgage business and deliver memorable services to all financial institutions,” says Lim. — Com