Savills: Real estate investment volume totals $24.7 bil in 2022, down 1% y-o-y
In 2023, Savills expects that the majority of Government Land Sales (GLS) sites available, the $2.16 billion sale of Jurong Point, and the sale of strata units at Thomson Plaza will boost the baseline common investment sales quantity.
Investment revenues worth in Singapore came out at $24.7 billion for 2022, a decrease of 1% y-o-y, according to an investment report by Savills Singapore. For 4Q2022, the market clocked $2.81 billion in assets sales, dropping 36.1% q-o-q– the 3rd consecutive quarter of decrease– as a result of stalling market conditions, the record includes.
Savills expects total investment sales market price for 2023 add up to $24 billion to $25 billion, and also event to be damped by economic and prime rate headwinds.
Residential sales stilled make up one of the most substantial sales value, composing 49.9% of complete financial investment sales value past quarter. Nevertheless, sales within this sector shared equally to $1.4 billion in 4Q2022. This was the 2nd successive quarter of downtrend this part documented in 2014.
The commercial sector saw a revive in negotiable event, expanding 28.4% q-o-q to $1.02 billion in 4Q2022 after two continuous quarters of decline. The return is primarily credited to a 166.1% q-o-q development in workplace investment deals from $251.4 million in 3Q2022 to $668.9 million in 4Q2022, claims Savills.
” Despite damaging economic and interest rate conditions, provided the visibility of the economy and also a positive impression of Singapore, overall investment sales price should continue to be profitable in 2023,” says Alan Cheong, executive head of Savills Research. “While higher credit costs may hamstring institutions, there still exists the possibility of an expensive special offer or a collection of medium-sized proceedings through this year.”
Meanwhile, retail and industrial investment sales each decreased 34.9% also 48.1% q-o-q. Retail sales went over a relatively high base in 3Q2022 along with the end quarter of the year saw a decrease in retail industry strata sales plus lower purchase worths of shophouses.