Tag Archives: Investment Sales

Real estate investment sales jump 18 times to S$4.87b in Q1: CBRE

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Property consultancy CB Richard Ellis (CBRE) said on Thursday total investment sales in the real estate sector grew to a whopping S$4.87 billion in the first quarter this year.

This was 18 times higher compared to the S$273.8 million in transacted value posted in the first quarter last year.

In its latest report, CBRE said the brisk sale of government land sale (GLS) sites in the first quarter, which amounted to about S$934.66 million, contributed significantly to the higher investment sales.

Real estate sales in the commercial and industrial sector also showed signs of interest and higher sales.

The commercial investment market chalked up 25.3 per cent of total investment sales in the quarter at S$1.23 billion.

Meanwhile, in the industrial sector, there were 26 known transactions, making up 23.8 per cent or S$1.16 billion of investment sales for the quarter.

Still, the star performer was the residential segment, with investments amounting to S$2.4 billion in transacted value in the quarter.

Out of the total amount in investment sales, private investors accounted for 79.3 per cent or S$3.86 billion. The public sector contributed the remaining 20.7 per cent or S$1.01 billion.

According to CBRE, the real estate investment sales market is looking positive, with a possible S$15 billion worth of transactions for 2010.

Source : Channel NewsAsia – 15 Apr 2010

Property investment sales down 8.5% in Q1 on-quarter to S$2.64b

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Investment sales in the property market finally slowed in the first quarter this year.

Property consultant DTZ Research said the value of investment transactions in the first three months this year fell 8.5 per cent on-quarter to S$2.64 billion.

It was the first drop after three straight quarters of increases.

The industrial sector leapfrogged the residential sector to account for the bulk of the investment transactions.

Sales in the industrial sector made up S$1.02 billion or 38.5 per cent of the total transacted value.

DTZ said the sector saw good sales due to the sale and leaseback deals that were made by soon-to-be-listed Cache Logistics Trust, racking up deals worth S$713.2 million.

Residential investments came in second at S$879.2 million or 33 per cent of the total investment value.

The majority of the residential investments was from the sale of sites in the Government Land Sales (GLS) programme.

DTZ noted that with just 6.3 per cent share of total residential transactions, private investment sales were noticeably crowded out.

It predicted that this trend is likely to continue with the GLS programme expected to be the main source of land supply for residential development.

This is due to the variety of GLS sites available and the speed at which they could be tendered for and put on the drawing block for sale in less than a year.

DTZ also forecast that there could be more foreign purchasers in the coming quarters.

This, it said, is evident from the major acquisitions of two office buildings, Robinson Point and One Finlayson Green, both of which were bought by foreign investors.

DTZ said an ongoing economic recovery is expected to lead to increased investment activity this year.

The figures compiled by DTZ Research comprise transactions that are more than S$5 million each.

They exclude S$1.75 billion of transactions in single residential units, or lots that cannot be redeveloped/subdivided into more than one plot, as well as deals that are deemed to be interested person/party transactions.

Source : Channel NewsAsia – 6 Apr 2010

Real estate investment sales showing signs of strengthening: CBRE

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Property consultancy CB Richard Ellis (CBRE) on Wednesday said activity in the real estate investment sales market has started to strengthen with the recovery of the Singapore economy.

In the first three months of the year, sales of residential Government Land Sale sites have come up to nearly S$935 million.

Activity in the commercial sector, as well as the industrial sector, also picked up.

CBRE said that in light of the improved climate, total investment sales have amounted to S$4.4 billion in the first quarter so far.

That is some 16 times more than the S$274 million in the same period last year.

The private investment sales market has so far accounted for 77.2 per cent of the quarter’s total investment sales, while investment sales in the public sector have contributed the remaining 22.8 per cent.

The commercial investment market has also been active, chalking up 24.5 per cent of total investment sales in the quarter with S$1.08 billion to date.

In the industrial sector, CBRE said there have been 26 known transactions so far during the quarter – making up 26.3 per cent of total investment sales.

CBRE’s Executive Director of Investment Properties, Jeremy Lake, said that compared to a year ago, this year’s prospects in the investment sales market are positive and more than S$15 billion worth of investment sales could be transacted during the year.

He added that while most of the major investment sales transactions last year were dominated by Asian investors, there is now a diverse pool of buyers.

Source : Channel NewsAsia – 24 Mar 2010

Singapore’s investment property market staging a robust comeback

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Singapore’s investment property market seems to be shrugging off the global financial crisis and is staging a robust comeback.

Property consultant C B Richard Ellis said Singapore’s investment market performed much better than expected in 2009. It said total real estate investment sales came in at S$10.2 billion.

While the figure is 43 per cent less than the S$17.9 billion number set in 2008, it is still better than an initial estimate of S$1.35 billion at the start of 2009.

But in the fourth quarter last year, total investment sales amounted to S$3.86 billion, a drop of 7.2 per cent from the previous quarter.

CBRE said the dip was due to the residential market taking a breather from the intense activity witnessed in the earlier part of the year.

Separately, property consultant DTZ said Singapore accounted for the bulk of investments flowing into Southeast Asia in the fourth quarter last year. It said 73 per cent of Southeast Asia’s total transactional value of US$2.4 billion was due to Singapore.

DTZ noted that Singapore did well as it is the gateway to the region.

Most of the investments over the period were channelled into the residential sector, followed by the retail sector.

In Singapore, the residential market made up 57 per cent of the transactional value in the fourth quarter of 2009.

DTZ added that the real investment market in the region was driven mainly by domestic firms and private investors.

Source : Channel NewsAsia – 14 Jan 2010

Property investment sales triple in Q3 on-quarter to S$2.3b

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Property consultancy DTZ said on Thursday investment sales here tripled in the third quarter of this year.

Total property investment value in the July to September period jumped 200 per cent on-quarter to S$2.3 billion.

Historically though, the figure is still below the S$4 billion to S$12 billion mark achieved quarterly between 2005 and 2008.

DTZ attributed the increase in investment sales in the third quarter to a buoyant residential market and improving investor sentiment.

About 92 per cent of the investments were below S$100 million each, and they contributed 49 per cent of total transaction value.

Six deals of between S$100 million and S$500 million made up S$1.2 billion, or 51 per cent, of total sales.

DTZ said investment purchases continued to be driven by mainly private domestic buyers, who accounted for 72 per cent of deals above S$50 million.

Excluding Government Land Sales, the largest transaction so far this year was the sale of Swissotel Merchant Court at S$260 million in August.

Source : Channel NewsAsia – 8 Oct 2009

Property investment sales up 13% in Q3 to S$1.8b

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Property investment sales rose 13 per cent between July and September to S$1.8 billion, compared to the previous quarter.

The improved performance was buoyed by better market and investor sentiments.

In its latest report, property consultancy Jones Lang LaSalle said the residential sector dominated investment sales, accounting for 52 per cent of total sales.

Investment sales in the residential sector for this quarter totalled S$958 million. These include the sale of 24 Good Class Bungalows and 47 landed properties worth above S$5 million each.

With affordability remaining a key factor, Jones Lang said most investment transaction deals were still concluded below the S$100-million mark.

The exceptions were the two largest transactions in this quarter that came from the commercial sector.

The Suntec Convention Centre was injected into the ARA Harmony Fund, in which Suntec REIT holds a 20 per cent stake, for S$235 million.

K-REIT also joined the acquisition spree by purchasing six floors of its partially-owned Prudential Towers for S$106 million from Asia Property Fund.

This transaction boosted K-REIT’s ownership of this building from 44 to 73 per cent.

Jones Lang said the encouraging performance of the investment sales market is testament to the liquidity still available in the market.

Along with improving economic sentiments, Jones Lang said this market is expected to improve with more transactions expected by the end of the year.

Source : Channel NewsAsia – 16 Sep 2009

Sales at an all time high

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A STRONG revival in property sentiment has propelled real estate investment sales in Singapore to surge in the second quarter to hit a total of $1.35 billion, according to latest statistics in a report by Colliers International.

This was the highest level achieved since the third quarter of last year, said the property consultancy firm yesterday.

The residential sector made up the bulk of the activity, chalking up some $887.13 million, or 65.8 per cent of the pie.

Besides the flurry of individual transactions in properties such as bungalows and luxury apartments, Colliers attributed the strong showing to the resurgence of en bloc commercial deals.

In particular, the sale of Anson House, Parakou Building and VTB Building has chalked up total sales of $237.38 million during the quarter.

The buildings are bought respectively by a group of high net worth individuals, a Cathay Organisation unit and a joint venture between Yi Kai Group and Fission Group, said Colliers.

“The standoff between buyers and sellers has dissipated because prices have corrected. With improved sentiments, buyers are also more willing to commit,” said Colliers’ research and consultancy director Tay Huey Ying.

She said the moribund office rental market would not deter such buyers as they are mostly looking for “mid-term capital appreciation”.

There was also evident interest in both public and private development sites. in the latter, a number of smallish development sites worth some $130.12 million were transacted, compared to only $14.32 million in the first quarter.

“Going forward, developers are expected to remain vigilant in their land banking activities and are likely to minimise risk exposure by committing to smallish sites that require lower capital outlay.” Ms Tay said.

Investment activity in Asia also saw a “distinct improvement” due to improved liquidity flow and various pro-active government initiatives, said Colliers.

In particular, Tokyo topped the list in terms of investment transactions, achieving US$9.2 billion in transactions in the segment over the past year.

Source : Today – 19 Aug 2009

Colliers says property investment activity rose in Q2

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Property consultancy Colliers International said the Singapore investment sales market experienced a surge of activity in the second quarter this year.

Both the private and public sectors garnered investment sales transactions totalling S$1.35 billion from April to June, nearly four times higher than the previous quarter.

Colliers said the renewed buzz in the investment market was supported mainly by returned interest following price corrections.

A turnaround in market sentiment on the back of improved economic outlook and the stock market rally also fuelled the increased activity.

For the residential sector, Colliers said market sentiment is likely to stay upbeat over the next six months, barring major setbacks like poor economic data.

However, it notes that home buyers remain price-sensitive.

As such, sentiment must remain good and prices must be controlled for average monthly home sales to remain above the 1,000 units level for the rest of the year.

On the industrial sector front, Colliers is predicting that the rents and capital values of industrial space could decline by up to 15 per cent for the second half of the year.

That’s due to a large supply looming amid lower demand.

For the retail sector, the consultancy is forecasting that rents of retail space, especially those in Orchard Road, will contract by five to 10 per cent over the next 6 months.

And in the office space, Colliers expects rents and capital values of islandwide Grade A office space to remain depressed.

Source : Channel NewsAsia – 21 Jul 2009

Analysts see increased activity in investment sales market in Q2

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There has been a huge spike in activity in the investment sales market in Singapore during the second quarter this year.

According to property consultancy CB Richard Ellis, total property investment sales in the period so far have amounted to some S$954 million.

The amount is up by more than three times from the previous quarter.

CBRE said Thursday the good showing was due to the sharp recovery in the stock market.

In particular, the residential market witnessed a substantial increase in buying activity.

Total residential investment sales, including Good Class Bungalows, accounted for 63.5 per cent of the total, or S$605 million in transacted value.

The figure is up sharply from S$150 million in the January to March period.

There was a sharp pickup in sales of Good Class Bungalows with 14 transactions, including the sale of 2 Binjai Rise, which was reportedly bought by actor Jet Li.

A hotel site at Short Street was also sold during the second quarter, under the government’s land sales programme.

Fragrance Assets was awarded the site after submitting the highest bid of S$15.5 million.

Source : Channel NewsAsia – 25 Jun 2009

2009 Q1 saw only 10 investments in Singapore’s property market

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Singapore’s investment property market was quiet in the first quarter of the year, as the global recession continues.

The first three months of 2009 saw only 10 investment transactions, compared to 15 in the fourth quarter of last year.

All the deals were below S$40 million.

Real estate adviser DTZ said all the investment sales in the first quarter took place in the private sector.

This is partly due to the fact that government land sales through the confirmed list had been suspended and no reserve site was triggered.

DTZ added that private sales are expected to dominate for the rest of this year.

In addition, it said total investment sales plunged 58 per cent to S$153 million in the first quarter of this year.

This is the third lowest amount since 1998.

DTZ said residential investments contributed the most in total sales at 46 per cent in the first quarter.

The office sector was next with 34 per cent of total sales in the same period.

Investment sales in the industrial sector on the other hand fell the most in the quarter.

It dropped by 80 per cent to S$25 million.

DTZ’s senior director for investment advisory services and auction, Shaun Poh, said, “Activity in the investment market could pick up in the late part of the year when the economy is expected to recover and lending conditions ease. The market is not short of interested investors with money on hand, looking for prime properties.”

DTZ noted however, that there’s currently a mismatch in bid-ask prices, hampered by tight credit and expectations of falling rents.

Source : Channel NewsAsia – 8 Apr 2009