Chart of the Day: Office property investments nearly doubled to $1.9b in Q2

It outgrew the residential segment where investments plummeted to $914.2m.

This chart from Edmund Tie & Co. (ET&Co) shows that office investments sales value almost doubled to nearly $1.9b to account for 38% of total investment sales value in Q2 from what in Q1. It has beaten the residential segment which used to make up of 31.8% of the total sales value in Q1 but now account for 18.6% in Q2.

Also read: Property investment sales jumped 34% to $6.3b in Q1

A number of high-value office investment deals occurred during the quarter, being led by the sale of Chevron House to AEW for $1.03b, approximately $2,740 psf, based on the increased net lettable area (NLA) of 374,165 sq ft. It included the current asset enhancement initiative (AEI) and five floors of retail podium.

On the other hand, residential property investment sales value plunged 41.1% QoQ to $914.2m in Q2 as the number of GLS sites awarded fell from three to two during the quarter.

Furthermore, the Ministry of National Development (MND) reduced the number of private residential units to 1,235, excluding executive condominiums (ECs), under the Confirmed List of H2 2019 GLS by nearly 25% compared to H1 2019’s Confirmed List.

“With the current supply situation, developers remained cautious with a preference for GLS sites compared to the private en bloc sites which have stayed muted since the cooling measures in July 2018,” ET&Co said in the report.

There was only one private investment sale for a redevelopment site at 2 Cavan Road, zoned Residential with Commercial at 1st Storey, for $38.7m or $642 psf ppr excluding development charges, with a development potential of up to 60 residential units.