Private property sales rocket to a massive 131.1%

This beyond double surge is from the $2.41b-worth of 10 big-ticket deals.

Colliers International said that Singapore property investment sales market staged a strong rebound in 2Q 2012 with growth recorded for all key sectors.

Total investment sales value soared by nearly 89.0% to $8.90 billion in the quarter ending 30 June from the $4.71 billion accumulated in 1Q 2012. This brought the total investment sales value for 1H 2012 to $13.61 billion.

The private sector was the main driver of 2Q 2012’s rebound. The sector saw a quantum leap in sales value to some $5.80 billion, reflecting an impressive surge of 131.1% from the $2.51 billion transacted in the preceding quarter. Public sector sales also registered growth, although at a comparatively milder rate of 40.9% from the $2.20 billion amassed in 1Q 2012, to $3.10 billion generated from the sales of 16 land parcels comprising 11 residential, four industrial and one hotel sites.

The upsurge in private sector sales was fuelled by the conclusion of 10 big-ticket deals (worth above $100.00 million apiece) amounting to $2.41 billion, compared to only three such transactions sealed in 1Q 2012 totalling $774.00 million.

Of these, three were commercial properties, with the largest being the sale of the 99-year leasehold suburban mall, Compass Point, by Sengkang Mall Ltd to a consortium – Gemshine Investment (S) Pte Ltd formed by Fraser Centrepoint Ltd and Prudential UK for $519.00 million or $1,925 per sq ft over its existing net lettable area (NLA) of 269,546 sq ft. Incidentally, the deal, reflecting a net yield of 5.6%, was also the first private sector sale that breached the $500.00 million mark this year.