Property investment value doubles QoQ to $7.13b in Q3

Investments in the residential sector also doubled to $3.43b.

Investment in the real estate market doubled quarter-on-quarter to reach $7.13b in the third quarter with both residential and commercial property seeing investment growths, according to a report by Savills.

Investment in residential sites, which accounted for 48.1% of the sales during the quarter, doubled compared to the preceding period to reach $3.43b.

It also noted that private housing market activity started cooling recently as the 60% additional buyer’s stamp duty (ABSD) curtailed demand from foreigners particularly in the high-end market.

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Commercial investment sales, meanwhile, surged by 62.2% to reach $1.69b and accounted for 23.7% of the overall investments. This is backed by two big-ticket block transactions led by the $908m collective sales of Far East Shopping Centre to Glory Property Development, and the $338m Fraser Centrepoint Trust’s divestment of Changi City Point.

In the public sector, Savills noted the sale of seven land parcels under the Government Land Sales Programme worth $4.16b, accounting for 58.3% of the investment value, and the highest quarterly value under the programme since the third quarter of 2011.

Meanwhile, the private sector investment rose by 2.8% to $2.97b despite a 31.6% drop from the 98 transactions from the previous period due to the ghost months, a rise in ABDS rates, and the high-interest rate environment.