Property investment volumes to grow at a 'milder' rate: Colliers

Investors will factor in various headwinds moving forward, said the expert.

Singapore’s investment volumes in the property market are expected to grow at a “milder” and “more sustainable” rate for the rest of the year, according to Colliers.

In a report, the expert said investors will likely factor in various headwinds from rising interest rates and geopolitical tensions.

In Q1 2022, investments grew 34.4% to $10.6b

The slow down will also be felt in the industrial segment where Colliers expects the cap rate to remain compressed due to demand for new economy assets constraining supply

On the flip side, Colliers sees renewed interest in retail and hospitality assets on the back of economic recovery fueled by Singapore's border reopening.

The border reopening will also allow for keen competition for core assets and those providing stable yields to continue through 2022, the expert added.

Apart from retail and hospitality assets, Colliers said properties with repositioning and asset enhancement potential will also be “increasingly attractive” to investors seeking core-plus and value-add opportunities.

Meanwhile, Colliers said capital growth will be bolstered by Corporate M&A and cross-border activity as well as the conclusion of a few large commercial deals and land tenders Moving forward.