SG property investment sales recover to pre-COVID levels: Colliers

Investment sales surged to 86.3% in the second quarter despite tightened restrictions.

Real estate investment sales rocketed to a 171% growth year-on-year, at $9.6b, for the first half of 2021, according to a report by Colliers.

This puts Singapore real estate investment sales back to pre-COVID levels, higher than the $8.9b registered in the first half of 2019.

For the second quarter, investment sales grew by 86.3% quarter-on-quarter (QoQ), driven by industrial assets.

“We expect sales to remain strong in the second half (H2) of 2021, supported by Singapore’s safe-haven status, pro-business environment, and economic growth,” Colliers said.

Industrial investment sales saw a massive 105% boost QoQ, to $2.0b, driven by the privatisation of Soilbuild Business Space REIT and Ascendas REIT’s purchase of a 75% state in Galaxis. Colliers expects positive long-term growth in warehouses, data centres and high-spec space to go hand-in-hand with e-commerce and technology growth.

Commercial sales were up 23.9% QoQ, as more tech giants continue to set up base in Singapore.

The revival of public and private land sales led residential investment sales to grow by 96.4% QoQ, to $3.1b. Colliers expects collective sales to recover in 2021.

Shophouse sales saw a rebound to 132% QoQ growth, at $310m, after declining by 56.3% in the previous quarter.

"As Singapore accelerates its vaccination program to immunise 75% of its population by early October and at least two-thirds by 9 August 2021, we can expect further easing measures in H2 2021 and a brighter outlook for investment sales over the next few years," said Colliers' Senior Director, Capital Markets, Capital Markets and Investment Services Ling Wei Kong.