Chart of the Day: Real estate investment sales crash 34.5% in Q3

The proportion of home investment sales contracted from 61.2% in Q2 to 34.4%.

The total value of investment sales plunged 34.5% QoQ to $6.5b in Q3 as July's cooling measures hit sentiment in the home sector hard, according to Edmund Tie & Company. 

Also read: Real estate sentiment sours in Q3 amidst property curbs

"The fall in investment sales was largely led by the residential sector, with investment sales decreasing by 63.2 per cent q-o-q to $2.2bn, arising from a lacklustre en bloc market," ET & Co said.

In fact, the proportion of residential investment sales to total sales crashed from 61.2% in Q2 to 34.4% in Q3 as a result of higher ABSD rates, although the sector continued to account for the largest share in investment sales. 

Nevertheless, there were still collective sale deals that transacted after the cooling measures, one of which was 99-year leasehold development Phoenix Heights, located at Bukit Panjang which was sold for $33.1m ($553.01 psf ppr).

In contrast to the dismal performance of the residential sector, other sectors like retail, industrial, office and hotel booked a QoQ increase in investment sales. 

Also read: Investors embrace industrial and commercial sector as property curbs hit home segment hard

The hotel sector registered the largest QoQ increase from $18.2m in Q2 to $83.0m in Q3. This includes two hotel transactions brought about by  the sale of Wanderlust Hotel for $37.0m to 8M Real Estate and Wangz Hotel for $46.0m to TCRE Partners.