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Real estate investments hit $7.5 bil in 3Q2021: Knight Frank

By Charlene Chin

/ EdgeProp Singapore |

October 5, 2021 6:55 PM SGT

(Credit: Samuel Isaac Chua/ The Edge Singapore)

SINGAPORE (EDGEPROP) - Singapore recorded some $7.5 billion of investment deals in 3Q2021, of which 49.7% was contributed by the sale of four Government Land Sales (GLS) sites, highlights Knight Frank in a report.

This transaction volume is a 38.7% increase from $5.4 billion in the previous quarter, and a 58.1% rise from $4.8 billion in the same period last year.

The award of the Marina View reserve site at $1.5 billion registered as the top land sale over the quarter, followed by the Jalan Anak Bukit parcel at $1.0 billion.

“With frenzied bidding at certain recent GLS tenders, other land-hungry developers may shift their focus towards the greater diversity offered by smaller-sized plots in a variety of locations, such as sites with more palatable quantums where owners are attempting a collective sale,” says Knight Frank.

“With the seal of the Flynn Park collective sale deal at $371 million or $1,355 psf ppr, this could cause a ripple effect in the en bloc market, given that many owners are keen to collectively sell their ageing units. As such, projects in the range of $600 million and below with about 600 units might just find willing buyers,” it adds.

In the Good Class Bungalow (GCB) market, transactions were at $452 million, which was at a slower pace and lower transaction volume than the preceding quarter.

Notable deals in the space include the sale of detached homes at 11 Queen Astrid Park to TikTok CEO Chew Shou Zi for $86 million ($2,704 psf) and at 3 Bishopsgate for $65 million ($2,208 psf).

Investors also flocked to strata offices and shophouses. Deals for the property types include the purchase of 61 Robinson by Rivulets Investments for $422 million, and a portfolio of six office floors in Suntec City Towers that was sold to Silk Road Property for a total of $197 million.

“With interest running high and activity moving at an encouraging pace, continued activity is expected in the commercial and shophouse markets with more spaces being launched for sale in the coming fourth quarter,” highlights Knight Frank.

In the industrial market, key deals in 3Q2021 included the sale of a warehouse at 28 Quality Road for $50 million and a single-user factory at 45 Tuas View Circuit for $27.7 million.

“The industrial sector will continue to feature steady investment activity and this trend will likely spill over into 2022,” it says.

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