Singapore's property investment market soars 50% to $8.1b

It rose as the fourth biggest commercial real estate market in the region.

Singapore reached its highest position in the rankings of the most active commercial real estate market in Asia Pacific by Real Capital Analytics (RCA).

According to the research by RCA, Singapore’s investment market grew by 50% to $8.1b in 1H17, reaching its highest position on the leaderboard since 2013. 

The growth was underpinned by several office and residential market deals. The strength looks set to continue with an additional $6.3b (US$4.6b) of deals in contract.

The investment flows have gained momentum despite a sluggish rental market. A joint venture of government-linked investors bought the Jurong Point shopping mall for $2.2b, contributing to the 8% growth in investment sales in the region.

The city-state also contributed to the overall apartment sector in the region, which soared 109% to $10.4b in the first six months of the year.

Hong Kong clinched the title as the largest Asia Pacific commercial real estate investment market, pushing past Tokyo. The growth of Chinese capital into Hong Kong boosted volume.

For 1H17, total activity in Hong Kong climbed 5% YOY and the deal count at midyear is almost twice that of a year ago.

Tokyo lost its rank as the top of the market for the first time since 2007. Investors have struggled to place capital in the city and activity migrated to the secondary cities such as Yokohama and Osaka. Yokohama climbed to the seventh spot on the list, a record for this market.

Shanghai and Singapore are on Tokyo’s heels. Less than half a billion dollars separates Japan’s capital and Shanghai in the third spot and Singapore in the fourth position.