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SG Property investment sales down 10% in Q2

Property Here - Thursday, June 20, 2013

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Preliminary figures from Savills reveal that investment sales of properties valued at S$10 million and above dropped 10 percent to S$4.5 billion in Q2. The final figures are expected to range between S$4.9 billion and S$5 billion.

This is lower than Q1 sales of S$5.6 billion, which was a significant drop from S$8.3 billion in Q4 2012 and S$9.4 billion in Q3 2012.

However, it has to be noted that Q2 2012 was a high base, with large transactions such as the Far East Hospitality Trust’s flotation, which include the S$2.1billion sale of four serviced residences and seven hotels. Meanwhile, Q3 2012 saw the sale of Nex mall’s half-stake for S$825 million, while Q4 2012 witnessed DBS’ purchase of a 30 percent interest in Marina Bay Fiancial Centre Tower 3 for S$1.035 billion.

In the private sector, investment sales transactions were relatively smaller, with the Lend Lease’s sale of its stake in retail-office development Jem as the biggest deal.

Despite its irregular performance, investment sales market is still active, according to industry players. However, they are reducing their earlier forecast for this year.

Savills slashed its forecasts from S$25 billion to S$27 billion in March to S$20 billion to S$22 billion, while CBRE expects the year to end at S$20 billion to S$25 billion, down from S$31.45 billion previously.



Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg