Investment sales soar 34.4% QoQ to $10.6b in Q1 2022

The Q1 2022 figure is the highest quarterly volume since Q4 2017.

Investment sales volume rose 34.4% QoQ in Q1 2022 to $10.6b, data from investment management firm Colliers showed.

The figure marks the highest quarterly volume since Q4 2017.

Across sectors, residential had the biggest contribution to the total sales volume at 29.0%, followed by retail (25.4%), and office (21.3%).

According to the firm, the increase in sales volume was due to major commercial deals, government land sites, and related party transactions.

Looking ahead, Colliers said investment volume would grow at a milder pace, while prices will be at a sustainable rate as "investors factor in the various headwinds such as rising inflation and interest rates."

"Post cooling measures, we expect developers to bid more cautiously for both public and private sites. The success of collective sales might also be hindered by the price expectation gaps between both sides," the analyst added.

Meanwhile, Colliers also expect investors to source for properties with potential for repositioning and asset enhancement, thus pulling demand for core-plus and value-added opportunities.

Other assets such as prime retail and hospitality will also receive interest from investors following the reopening of borders, according to that analyst.