Property investments drop 5.7% QoQ to $3.8b in 2Q23
Colliers attributed the decline to high borrowing costs.
Investments in Singapore’s property market fell by 50.1% YoY and 5.7% QoQ to $3.8b in 2Q23, data from Colliers showed.
In a report, Colliers attributed the decline to high borrowing costs which “makes larger assets less digestible.”
OF the total volume in 2Q23, 17.7% were Government Land Sales (GLS) transactions.
Without the GLS deals, deal investment volume for the quarter would have dropped by 19.2% QoQ to $3.1b.
Excluding the GLS deals, the residential, industrial, and office sectors carried the market, accounting for 33.5%, 26.7%, and 18.3% of the deals in 2Q23, respectively.
Towards the end of 2023, Colliers believes that transaction volumes will pick up.
“More clarity on the trajectory of interest rates and inflation” will help investors in their decision-making, said the real estate expert.
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