S’pore drops outside top 30 markets for property sales

The Republic fell out of an annual global ranking of top 30 markets for property sales volumes, as a slew of cooling measures dampened investor sentiment, said a report released yesterday.

No figure was given for Singapore’s performance over the six-month period ended June this year in the Emerging Trends in Real Estate Asia Pacific 2015 report published by the Urban Land Institute and PricewaterhouseCoopers (PwC), which gave figures only for the top 30 markets. As a comparison, the Republic ranked ninth with sales of US$4.7 billion (S$6.2 billion) over the same period last year, while 30th-ranked Phoenix in the United States registered US$2.4 billion this year.

The report said government measures to curb price increases in Singapore’s residential market have led to a sharp fall in property transactions. As such, investors are turning to foreign markets to look for deals, it added.

“With more attractive real-estate investment options in key Australian and Japanese cities, the decline in the overall real-estate investment sentiment in Singapore in 2014 is not unexpected,” said PwC Singapore real estate and hospitality leader Yeow Chee Keong in a statement.

In the Asia-Pacific region, the industrial/logistics sector was the most popular property type for investors, the report said, followed by the hotel and office sectors. But investor interest in the housing and retail sectors fell. Six Asia-Pacific markets made it to the top 30 ranking in the 2014 report — Tokyo (third), Hong Kong (eighth), Sydney (10th), Shanghai (14th), Melbourne (16th) and Seoul (28th).

For next year, however, Singapore’s property investment prospects are strong, with the Republic ranking ninth globally. Mr Yeow attributed this to Singapore’s reputation as an attractive business location, as seen in several global reports on the ease of doing business, quality of living and competitiveness. “There should be more opportunities for deals in the commercial sector in 2015 given the supply and the expected increase in office rental. In the residential sector, what we hope to see is an increase in sustainable transactions beyond 2015, should there be a re-calibration of the cooling measures or of sellers’ expectations of exit values,” he said.

Source : Today – 6 Dec 2014

Join The Discussion

Compare listings