COMMERCIAL PROPERTY | Staff Reporter, Singapore

Investment sales raised $40.2b in 2017

The residential sector comprised 54% of the deals.

Investment sales in Singapore could stay robust in 2018, after their total value hit $40.2b last year, Colliers International revealed.

According to a report, the residential sector accounted for 54% of the deals, thanks to strong demand for sites via public tender and the collective sale market.

Colliers said this was the highest annual investment sale value since the 2007 property boom.

The commercial property sector comprised 30% of investment sales, driven by landmark deals including Asia Square Tower 2 which was sold for $2.09b, the Beach Road Government Land Sales (GLS) site for $1.62b, and Chevron House in Raffles Place for $660m.

Colliers head of research for Singapore Tricia Song said, "This positive momentum should carry into 2018, with a strong start anticipated in the residential sector. As at January 10, there are 11 residential collective sale tenders closing in the next five weeks, including City Towers in District 10, and four GLS tenders due on January 30."

Here's more from Colliers International:

The recovery in the private residential prices which started in the third quarter of 2017 looks set to continue this year. The current wave of collective sales could well accelerate price recovery in the near-term due to immediate incremental demand from displaced sellers and the large capital gains. Average home prices may rise by 17% over 2018-2021, supported by higher GDP growth, falling physical completions and ongoing collective sale deals.

Colliers’ 2018 Asia Pacific Property Outlook report projects that Grade A office rents in Singapore could pick up by 5-7% in 2018 on the back of rosier economic outlook and recovering occupier markets, with increasing demand from new tenant segments such as coworking operators as well as technology and media companies.

The report also forecast a more positive outlook for business and industrial park market in Singapore against the backdrop of an improved manufacturing sector and the Government’s initiatives to transform industries and encourage adoption of new technologies. 

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