Singapore real estate investment sales up 25.4% YoY in Q3

The growth was driven by the $1.85b ION Orchard sale and $1.6b industrial acquisition.

Investment sales rose 22.7% QoQ and 25.4% YoY increase to $8.05b in Q3 2024, Savills reported.

The growth was driven by major transactions, including the $1.85b sale of a 50% interest in ION Orchard by CapitaLand Integrated Commercial Trust and a $1.6b acquisition of industrial assets by Warburg Pincus and Lendlease.

Government Land Sales (GLS) contributed $2.34b to the total, a 25.9% decline from the previous quarter.

Commercial investment sales also rose by 51.7% QoQ to S$2.45b, led by the ION Orchard deal.

The industrial sector recorded a significant rebound, with investment sales surging over sevenfold from Q2 to S$2.45b in Q3.

Notable transactions include a $1.6b business park portfolio acquisition by Warburg Pincus and Lendlease, ESR-LOGOS REIT’s $428.4m purchase of a manufacturing facility, and Ho Bee Land’s $272m divestment of a 49% interest in its one-north biomedical project.

Meanwhile, the commercial and industrial sectors continued to dominate as investors navigated financing challenges and a cautious market outlook.

“Investment sales activity is beginning to revive due to expectations of further interest rate cuts to come and the return of ultra high net worth investors,” said Alan Cheong, executive director of Research & Consultancy at Savills Singapore.