Commercial property sales drop to $1.9 billion in the first quarter of 2019 from $3 billion in the previous quarter.
Singapore saw commercial property sales drop to $1.9 billion in the first quarter of 2019 from $3 billion in the previous quarter, revealed a Knight Frank report.
Notable deals included the $562.2 million sale of the GLS hotel site at Club Street, the $400 million sale of Liang Court and Rivervale Mall’s $230 million sale.
Hotels and serviced apartments received keen interest, on the back of the more optimistic outlook for the hospitality sector. This was evident in the state tender for the Club Street hotel site, which attracted eight bids.
Knight Frank noted that while no major office building sales was registered in Q1 2019, the strata office market continued to be active.
ARA Asset Management even sold six levels at Suntec City for $160 million, while the Oversea-Chinese Banking Corporation moved three levels at The Octagon for $45.5 million.
The office rental market’s robust performance also contributed to the growing interest for commercial properties. Oxley Holdings, for instance, reportedly received a $1.025 billion offer for Chevron House, which they acquired for $660 million.
Overall, real estate investment sales jumped 34 percent to $6.3 billion in Q1 2019, from $4.7 billion in Q4 2018.
The property consultancy said investors continued to eye opportunities abroad during the period under review, albeit at a slower pace.
With this, outbound investment from Singapore fell to around $12.4 billion from $20.7 billion previously.
“Notable overseas investments included ARA Asset Management’s acquisition of Seoul Square in South Korea, CapitaLand’s acquisition of 70 percent of Pufa Tower in Shanghai, China in a 50:50 joint venture, and Keppel Corporation purchase of Shanghai Yi Fang Tower Complex at Shanghai’s Hongkou District,” said Knight Frank.
Looking ahead, the property consultancy expects the announcement of the draft master plan and the new incentives to trigger investment sales in the commercial market.
“The announcement of the Draft Master Plan and the package of incentives to rejuvenate the Central Business District implies there are more opportunities for investors and landlords with aging commercial buildings,” said Ian Loh, executive director and head for investment & capital markets at Knight Frank.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org