Investment sentiment in the Singapore property market remains positive but there are few core assets for sale.
That’s according to property consultants DTZ Research.
It found that investment in properties held firm in the second quarter, with S$8.3 billion of value transacted.
That’s higher than the S$8 billion of transactions recorded in the first quarter.
On a year-on-year basis, DTZ said investment sales in the first half of 2011 amounted to about 59 per cent of total investment sales in 2010.
Investment figures compiled by DTZ Research comprise transactions that are more than S$5 million each and exclude S$1.6 billion of transactions in single residential units and lots that cannot be redeveloped or subdivided into more than one plot.
Purchases of Government Land Sales sites make up the bulk of investments in Q2, amounting to S$4.6 billion, which is about 55 per cent of total investment activity in the quarter.
There were 26 transactions over S$100 million each, slightly more than the 24 deals in Q1.
Foreign investors were more active in Q2 as they accounted for 17.6 per cent of investment deals, compared to 10.5 per cent in Q1.
Foreign investments were largely driven by foreign capital from Asian economies such as China, Hong Kong and Malaysia.
DTZ said it expects similar investment activity in the second half of the year, as rental and capital growth outlook remains positive.
But it added that while there is ample liquidity, there are few core assets for sale, particularly in the commercial sector.
Source : Channel NewsAsia – 7 Jul 2011