Singapore’s property investment market surged in the third quarter, rising on the back of a buoyant office sector.
Property consultant DTZ said total investment sales in the third quarter totalled S$6.1 billion, up by some 23 per cent from the previous quarter’s S$5 billion.
A rebounding office sector helped transactions in office properties to cross the S$1 billion mark, a level not breached since the second quarter of 2008.
Investments in office properties more than quadrupled quarter-on-quarter to hit S$1.7 billion.
The good showing was driven by the sale of DBS Towers 1 & 2 to Overseas Union Enterprise, which bought the assets for S$870.5 million.
In the residential sector, investments in home properties hit S$1.9 billion and accounted for 30.4 per cent of overall investment purchases.
DTZ said the private sector had a larger hand in sewing up the majority of residential deals with 59.2 per cent share of all residential transactions.
This is unlike in the previous quarter, where investments were mainly geared towards government land sales of residential sites.
The transaction value for retail properties also jumped significantly from just S$6.8 million in the second quarter to S$250 million in the third quarter.
This is mainly due to the sale of 287 strata-titled units in Chinatown Point to a consortium led by Perennial Real Estate Group.
The industrial segment also gained ground, notching up a 65 per cent increase on-quarter to reach S$758.3 million.
DTZ said with sentiment improving, investors are going back into the market, leading to bigger deals being sealed.
Source : Channel NewsAsia – 30 Sep 2010