Singapore's property investment sales feared to shrink to $25-$30b

On back of lower public land sales.

According to Colliers International, while developer interests towards State lands are expected to stay healthy, public land sales in 2014 are likely to fall below the $9.70 billion worth of State land sales concluded in 2013.

Being cognisant of all of the above, Singapore’s investment sales activity in 2014 is likely to shrink from 2013’s level and is forecast to range between $25.00 billion and $30.00 billion.

Here's more:

Public land sales are likely to fall below 2013’s level as the Government is now slowly tapering back on public land supply.

Under the 1H 2014 GLS Programme, some 36 land parcels including 16 sites on the Confirmed List and 20 sites on the Reserve List were introduced.

Collectively, these sites could potentially yield a total of 11,585 housing units (including 2,770 executive condominium units), some 2.08 million sq ft GFA of commercial space, 955 hotel rooms and some 3.94 million sq ft GFA of industrial space.

The 11,585 housing units that can be generated from the 1H 2014 GLS Programme are the lowest bi-annually quantum since the 1H 2010 GLS Programme when some 10,550 housing units were made available for sales. This also represents a 18.2% reduction from the 14,155 housing units provided under the 2H 2013 GLS Programme.

Similarly, the provision of some 2.08 million sq ft of commercial GFA and 3.94 million sq ft of industrial GFA under the 1H 2014 GLS Programme reflects a fall in the potential commercial and industrial space by some 28.0% and 18.4%, respectively as compared to the 2H 2013 GLS Programme.

Furthermore, no hotel sites will be made available for 1H 2014 as compared to three hotel sites that were made available under the Reserve List in 2H 2013.