2023 to be ‘underwhelming’ year for real estate investment market: Savills Singapore

Real estate investments in Singapore recorded $7.13 billion in deals in 3Q2023, a steep jump from the previous quarter’s $3.57 billion. The market saw a two-fold increase, boosted by seven land parcels awarded under the Government Land Sales (GLS) Programme totalling $4.16 billion, which accounted for some 58% of total investments.

The range of goods and services available means that no matter what you’re looking for, you’ll be able to find something that you love. From clothing to electronics, you’ll be able to find it in the shopping centres near Tengah Plantation Close EC. With great prices, quality products, and a wide selection of goods, shopping centres near Tengah Plantation EC provide great value for money. Whether you’re looking for a treat for yourself or a gift for someone special, you’ll find something that you love at one of these shopping centres near Tengah Plantation Close EC.

The private sector contributed $2.97 billion in investment deals in 3Q2023, however, a 31.6% decline in the number of transactions was attributed to the Lunar Seventh Month, alongside the rise in Additional Buyer’s Stamp Duty and high interest rates.

Residential investment sales amounted to $3.43 billion, representing 48.1% of the quarter’s total. This was mainly bolstered by the sale of the residential site at Marina Gardens Lane for $1.03 billion, as well as the residential site at Jalan Tembusu which garnered $828.8 million.

Commercial investment sales were also up, with two major transactions contributing to the total tally of $1.69 billion, or 23.7% of total sales. This includes the collective sale of Far East Shopping Centre for $908 million, and the divestment of Changi City Point by Frasers Centrepoint Trust for $338 million.

While investment activity in Singapore remains optimistic, Savills has lowered its forecast of total investments for the year from a range of $24 billion to $25 billion, to between $19 billion and $21 billion due to a number of headwinds. These include “the possibility of new conflicts erupting, the rewiring of supply chains, political purges and the contagion effect arising from the recent terrorist attacks within Israel.”

“The recent investigation of a high-profile money-laundering case may have also dampened market sentiment,” Savills notes.

Jeremy Lake, managing director, investment sales and capital markets, at Savills Singapore believes that despite a lacklustre 2023, the following year may see a strong rebound. This is on the back of a decrease in interest rates, coupled with an expected improvement in global economic growth.

“While the global real estate industry may suffer from a host of problems, Singapore has that unique selling point that being a safe haven, there will still be a base level of transactions coming from those, especially the ultrahigh net worth families, seeking to diversify from riskier assets and countries,” adds Alan Cheong, managing director, investment sales and capital markets.