Residential investment sales crashed 68.2% to $0.5b

Stuck under TDSR pressure.

According to Knight Frank, the residential sector, which used to dominate the investment sales market, has fallen under pressure following the property cooling measures and the Total Debt Servicing Ratio (TDSR) ruling. Total residential investment sales dipped by a further 68.2 per cent q-o-q from $1.6 billion in 3Q 2013 to $0.5 billion in 4Q 2013. Overall, it has declined by 37.8 per cent y-on-y from $11.1 billion in 2012 to $6.9 billion in 2013.

Despite the lacklustre performance in 4Q 2013, overall investment sales in 2013 is positive due to record-setting performances from the commercial & hotel as well as industrial sectors. Both sectors achieved total investment sales of $16.7 billion and $3.3 billion in 2013 respectively, the highest since 2008.