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Commercial investment volumes rise 30% YoY to US$1.5b in Q3: MSCI

Singapore ranked 6th amongst APAC countries with the highest investment volume.

Thanks to Singapore's buoyant office sector, the market saw a 30% YoY increase in its commercial real estate activity in Q322.

Based on data from MSCI, Singapore's deal volume hit US$1.5b in Q322. 

"A rise in rents and a limited supply pipeline has boosted trading of offices and for the first nine months of the year, deal activity surpassed that for the whole of 2021," MSCI reported.

"Prices have continued to rise amid improving occupancy and rental levels, although this has been driven disproportionately by prime assets. Within the strata office market, investors have exhibited a clear preference for Grade A buildings, with a deal count over the past 12 months exceeding the 2019 tally. Buoyed by an influx of overseas private capital, office floors in the Suntec City complex have set highwater marks several times already this year," added MSCI. 

The 30% YoY increase landed Singapore as the 6th APAC  country with the highest investment volume for Q3.

MSCI also reported that Singapore is the third most popular location in APAC for cross-border investments, behind Japan and Australia.

"The city-state’s safe-haven status continues to attract a variety of private cross-border investors, which has continued to push prices up, particularly for the strata office and shophouse sectors," David Green-Morgan, MSCI's Global Head of Real Assets Research,  said.

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