Research by Colliers reveals that Singapore’s property investment volume will increase sharply in the first quarter of 2021 to levels seen prior to the COVID.
Its latest market research report on Singapore real estate performance investment in Q1 2021 and its prospects ahead analyzed the market position of Colliers (NASDAQ, TSX: CIGI), a global leader in commercial real estate services.
In August last year, price increases of just under 3 percent were recorded before the property curbs began in July.
Knight Frank said in its Q1 market update that investment sales are defined as over S$10 million transactions, as well as institutional transfers, as well as changes of legal ownership (through a change of addresses).
Low-interest rates, coupled with an increasingly competitive market, have to lead to the price recovery of Singapore’s real estate as a result of a temporary lockdown lifted last June. Recently, the pace of growth has increased drastically — from renting apartments like woodland residences, Parc Clematis , etc. to living in public housing to buying bungalows and luxury penthouses.
A family office set up in Singapore as well as the rarified and coveted status of the Good Class Bungalow segment adds value to this segment, the report stated.
In March, a record-breaking deal was closed by auctioning off a GCB at Nassim Road which brought in $128.8 million, or approximately $4,005 per square foot.
Private residential properties prices increased by 6.1 percent quarter on quarter, largely as a result of stronger demand for landed properties and higher prices in cities fringes.
Home prices rose 6.2% on an annual basis over the last two quarters, mainly driven by an increase of 5.2%.
Investing sales rose 377 percent as compared to the previous quarter to S$1.1 billion, while year-over-year sales reached 43.8 percent greater to S$3.6 billion.
Despite the reopening of Singapore’s economy, commercial volumes in Q1 2021 grew 43.8% year over year and 377% quarter over quarter. The Demand for Grade-A office space will continue to rise as more tech giants establish a base, and possibly leverage the URA Incentive Scheme.”
Having not seen a slowdown in price growth over the last two quarters, PropNex’s CEO Ismail Gafoor noted that the level of price growth could well draw the government’s attention, which may increase the risk of new cooling measures being introduced.
As the number of developers increased, partners, wire forming, such as the Amara Holdings joint venture which sold Surrey Point for S$47.8 million, and the Macly Group consortium which bought 2 residential plots at Institution Hill for S$33.6 million.
According to Jones Lang LaSalle senior director of research and consultancy Dr. Ong Teck Hui, Singapore-based Jones Lang LaSalle is likely to take similar action this time around. The risk of cooling measures rises as price momentum accelerates, he said.
More than $9.9 billion in outbound investment deals occurred during the quarter, up 45.6% YOY attributed largely to investors developing data centers abroad.
In the local market, Knight Frank said property sales are on hold as sellers wait for better prices. And if you are also waiting for the better prices, then must check out Parc Clematis Balance Units because in the international market, Knight Frank said property outflows will accelerate due to opportunities in other countries.