Rate cuts boost property investments by 24.8% QoQ in Q3

Total sales hit $8.3b.

The September rate cut has boded well for Singapore's property market, with investment activity growing by 24.8% quarter-on-quarter (QoQ) to $8.3b in Q3 2024.

Of the total value, Knight Frank Singapore reported that public sales accounted for $2.3b, while private sales took the lion's share at $6.0b.

Amongst sectors, industrial saw the biggest surge in sales activity, with value skyrocketing by 567.6% QoQ and 426.6% YoY to $2.5b.

Knight Frank attributed the rise to Lendlease and Warburg Pincus's $1.6b acquisition of seven industrial properties from a REIT owned by Blackstone and Soilbuild in August.

Other notable deals in the sector were ESR LOGOS Reit's 51% stake sale of 20 Tuas South Avenue 14 for $444.6m and the 49% stake sale of Elementum for $272.0m to Brunei's sovereign wealth fund, both in August.

The commercial sector also reported quarterly growth, with sales value increasing 37.2% to $2.7b, driven by CapitaLand Integrated Commercial Trust's $1.8b acquisition of a 50% stake in ION Orchard from CapitaLand Investment in September.

In contrast, the residential sector experienced a 24.7% QoQ decline in total sales value to $3.2b.