Chart of the Day: Here's how low property investment deals have dived since 3Q13

Despite its impressive 66% jump this quarter.

According to Savills, property investment transactions in Q2/2015 amounted to S$6.02 billion, up 65.7% from S$3.63 billion in the preceding quarter and bringing the total investment sales value to S$9.65 billion for the first half of 2015. This reflects an increase of 5.7% from the S$9.13 billion in 2H/2014 and 10.8% from the S$8.71 billion in 1H/2014.

Here's more from Savills:

Investment activity in the private sector in Q2 was moderate, with only 47 transactions recorded. Individual buyers in the residential sector are generally adopting a wait-and-see approach, either looking out for bargain deals, waiting for prices to drop further, or for some cooling measures to be removed. In addition, the tepid new-sales market has put a dampener on developers’ penchant for private residential land.

For the industrial and commercial sectors, concerns over the impending glut coming head-to-head with the already elevated prices and compressed yields are deferring investment decisions. Nevertheless, a few large-ticket deals done in the reviewed quarter, such as One Raffl es Place (assumed to have been concluded at the minimum value of S$1.29 billion for a 61.16% stake) and Park Mall (S$411.8 million), have boosted this sector; with a positive quarterly growth of 24.3% to S$3.27 billion.

This constitutes 54.4% of the total market in Q2. The remaining 45.6%, or S$2.75 billion, was attributable to the public sector, generated by the sale of three residential sites, three industrial sites and one commercial site under the GLS programme.

Compared with the previous quarter, the public sector’s investment sales value surged 174.8%. This was mainly due to the S$1.67 billion winning bid for the commercial site at Paya Lebar Road/Sims Avenue.