Residential investment sales up for the 2nd consecutive quarter in Q3

It is the top performing sector during the period with $3.58b in sales.

Investment sales in the residential sector increased by 6.6% quarter-on-quarter (QoQ) in the third quarter to $3.58b, the second consecutive period it rose this year, driven by the sales in the private sector, according to Savills.

In a statement, Savills said the investment sales in the top-performing sector accounted for the total sales value this year, increasing from 45% in the previous quarter.

The private residential investment sales surged by 77.2% QoQ to $2.48 billion mainly due to the “larger collective sales deals, healthy take-up of new launches and dwindling unsold stock spurring developers to replenish their land banks, leading them to look to collective sales sites.”

READ MORE: Private residential prices to climb 3.4% YoY in Q3: URA

The largest residential collective sale transaction year-to-date was recorded in the third quarter which is Chuan Park, which was sold to Kingsford Development and MCC Land for $890.0 million. 

However, residential investment sales in the public sector contracted by 44.1% QoQ to $1.09b due to the smaller price quantum of sites that were awarded under the Government Land Sales Programme.

Savills added that the number of sites awarded during the quarter was slightly higher than in the second quarter but their scale was significantly lower.