Investment sales fall 26.8% YoY to $20.5b in 2023

The residential market accounted for 64.4% of total investment sales in 4Q23.

Total investment sales hit $20.5b in 2023, translating to a 26.8% decline from the $28.0b in 2022.

The recorded sale was within Savills’ 2023 full-year expectation of $19.0b to $21.0b.

Looking at 4Q23 alone, investment sales dropped 26.6% QoQ to $5.4b.

According to Savills, the residential market accounted for more than half (64.4%) of the total investment sales for 4Q23.

Residential investment sales for 4Q23 reached $3.5b, mainly due to four Government Land Sales (GLS) residential sites awarded.

Meanwhile, the commercial sector posted $1.6b in investment sales and the industrial sector recorded $278.2m in 4Q23.

In 2024, Savills projects total investment to hit $22b to $23b as the GLS market remains active and given the likelihood of an interest rate cut in 2H24.