Property investment sales in Singapore rose 53 percent on year in the first quarter to S$9.2 billion.
According to property consultant CB Richard Ellis (CBRE), this was due to the high volume of development sites acquired.
Investment sales in the private sector amounted to nearly $7.7 billion, accounting for 83 percent of total sales in the January-March period.
The remaining 17 percent came from the public sector.
This comprised the sale of five government sites and the tender of the Sentosa Cove residential land parcels.
In terms of sectoral performance, the residential sector commanded the lion’s share, accounting for 60 percent or $5.6 billion.
The commercial sector contributed 36 per cent, or $3.2 billion, as investors displayed strong interest in office deals.
CBRE said office deals will continue to be sought after by property funds, institutional investors and REITs in anticipation of further capital value and rental appreciation.
It said it expects developers’ interest in residential development sites to remain strong.
And it added that office and retail investment properties will continue to be popular with foreign funds and institutional investors.
CBRE said the investment market is also likely to see more activity in the public sector in the next quarter and the rest of 2007.
This was based on its assessment on the positive response to the sites in the confirmed list under the Government Land Sales programme.
Source: Channel NewsAsia, 29 March 2007