Private sector property investment takes a back seat in Q2 as pricing mismatch intensifies

37 deals were inked last quarter.

The private sector is usually the driving force behind property investment sales in Singapore. However, private investment deals took a back seat in Q2 as the pricing mismatch between buyers and sellers intensified.

A report by CBRE noted that investment sales reached a total of $4.068b in Q2, an increase of 16.9% quarter-on-quarter.

However, the private sector made up only 32.9% of the total investment tally this quarter, comprising 37 smaller-quantum deals.

This is a reverse from the last three quarters when private sector sales dominated.

Four public deals contributed 67.1% with a total of $2.729b, buoyed by the significant sale of a site in PAya Lebar/Sims Avenue for $1.67b.

"With the limited stock of properties for sale, CBRE Research anticipates a further fall in private transaction volume id the mismatch in pricing between buyers and sellers persists. The sale of institutional-grade properties are aimed at core buyers who have the ability and liquidity to ride through the uncertainty in the short to medium term. CBRE REsearch expects investment volume to remain subdued in the next 6-12 months," the report said.