Real estate investment sales grew 11.4% to $10.31b in Q2

There were 15 residential en bloc sales that boosted quarterly sales.

The volume of Singapore’s investment sales for real estate jumped 11.4% YoY to $10.31b in Q2, CBRE revealed. This brings the H1 2018 investment tally to $20.32b, which is about half (57%) of the annual investment sales achieved in 2017.

According to a report, there were 15 residential en bloc sale sites transacted in the quarter, bringing the H12018 tally to 32 deals worth $9.69b. This has already exceeded the 26 collective sales worth $8.12b transacted in the whole of 2017.

Moreover, after three quarters of subdued purchasing activity, Hong Kong developers resumed land acquisitions in Singapore in Q2 2018, setting their sights on the residential sector.

“Investment sales for H2 2018 is likely to be buoyed by en bloc residential transactions, Government Land Sales sites, as well as a couple of plausible en bloc office deals in the pipeline. Commercial investment volume will likely make a comeback in the next six months,” CBRE said.

Whilst most of the office transactions in Q2 2018 were bulk purchases of strata-titled units, the outlook for en bloc office assets remains favourable, it added. Despite the existing low yields, investors remain positive about the growth prospects in the office market in 2018.

Desmond Sim, head of CBRE Research Singapore and Southeast Asia, will “not be surprised that the total investment sales volume for 2018 may be in the same region as 2017.”