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Real estate investment deals in Singapore amount to $3.8 bil in 1Q2021: Knight Frank

By Charlene Chin

/ EdgeProp Singapore |

April 6, 2021 5:01 PM SGT

SINGAPORE (EDGEPROP) - Real estate investment sales in Singapore amounted to some $3.8 billion in 1Q2021, representing an uptick of 26.7% y-o-y from $3.0 billion in 1Q2020, according to Knight Frank research.

The residential sector retained momentum, raking in some $1.7 billion of investment deals at the start of 2021. In particular, the Good Class Bungalow segment “continued to draw strong interest”, it adds, pointing to the sale of a GCB at Nassim Road for $128.8 million or S4,005 psf on land area in late-March.

Read more: Residential investment sales stoke the flames of recovery

Developers also acquired land banks through partnerships, like the collective sale of Surrey Point for $47.8 million by an Amara Holdings joint venture, and the purchase of two residential plots at Institution Hill for $33.6 million through a consortium comprising Macly Group, Roxy-Pacific Holdings and LWH Holdings.

In 1Q2021, the commercial and shophouse sectors also recorded $1.2 billion of investment deals. Such deals included the acquisition of a 50% interest in OUE Bayfront by Allianz Real Estate for $633.8 million, and in Certis Cisco Centre by RBC Investor Services Trust Singapore for $150 million.

Notable deals in the strata office and shophouse space included the transactions of shophouses at Teck Lim Road for $22.3 million and Mosque Street for $21.5 million, as well as strata office units on the 22nd floor of The Central for $41.7 million.

Meanwhile, industrial sector growth more than doubled over the quarter, recording $906.1 million of investment purchases, states Knight Frank. “With e-commerce set to stay and grow beyond its current levels, the demand for logistic spaces is envisaged to continue to increase to cater to the expanding inventory,” it says.

“As sentiments have generally improved across the globe, we envisage capital outflow to expand due to the availability of more opportunities overseas,” it adds.

Knight Frank says that in the local real estate market, “while sales activity has picked up, the stock of investment properties put up on the market is limited, as most sellers are holding on to their assets in anticipation that these properties would be able to fetch a better price in the near future, given that economic recovery seems more certain”.

In the investment market, it therefore expects to see more partnerships, particularly in the purchase of land.

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