Chart of the Day: Commercial investment sales crashed 86% to $437.4m

The sale of Capitol Singapore was the lone major transaction in the quarter.

This chart from Colliers International shows that in the first quarter of 2018, total commercial investment sales declined 86% to $437.4m (US$334m) compared to the last quarter.

The only major transaction was Perennial Real Estate Holdings (PREH) buying Pontiac Land affiliate Chesham Properties' 50% stake in Capitol Singapore for $528m, of which the retail component is attributed to be worth $349.5m.

Analysts argue that PREH could find an upside if it drives operations higher as progress hasn't come to the property given the impasse between shareholders.

Based on Colliers International research, Q4 2017 was boosted by the sales of a $1.62b Beach Road public tender, as well as Chevron House, and Pomo.

On a year-on-year basis, the volume was 78% lower as Q1 2017 saw major private deals such as the sale of PwC Building, GSH Plaza, and a 70% stake in TripleOne Somerset.