Real estate investment sales volume hits $19.1b in H122

This is already equivalent to more than 70% of 2021's total sales volume.

Singapore's real estate investment volume hit $19.1b in the first half of the year, data from Cushman & Wakefield (C&W) showed.

According to C&W, the H1 figure is already equivalent to more than 70% of 2021's total sales volume.

The impressive H1 record was on the back of increases in the investment volumes of both commercial and residential markets in Q2 2022.

Based on C&W's data, commercial investment volume surged to $7.2b, more than 2.5 times than Q1 22 figure.

The commercial market also surpassed the residential market in terms of volume share, accounting for 55% of total investment in Q2.

"High-quality commercial assets which can deliver stable cashflows, remain well-sought after by investors, with robust activities in both CBD and decentralised markets," C&W said

Capital appears to be embarking on a flight to safety as investors look to protect and grow their wealth in safe-haven assets," added C&W.

Amongst significant deals in the market for Q2 was the sale of the 37-storey Income At Raffles at Collyer Quat for around $1.0b or $3,600 psf to the investment firm, Bright Ruby Resources.

The residential market, on the other hand, had a more moderate increase, registering a total investment volume of $3.3b from $3.0 in Q122.

Both the public and private markets drove investment activity during the quarter, said C&W.

"Despite current cooling measures, developers remain sanguine about the private residential market given that private residential prices are poised to increase by an estimated 3.9% YTD during H1 2022," the property expert commented.

Overall, total investment volume surged to $13.03b in Q2 2022, more than double the previous quarter's record of $6.01b. 

If sales momentum in Q2 continues, full-year investment sales volume will likely reach a three-year high, said C&W.

"Notwithstanding headwinds from geological uncertainty and rising interest rates, positive sales momentum is expected to continue in H2 2022 as investors seek out safe havens for wealth preservation and diversification," the expert said.