Investment volume drops 34.7% YoY to $4b in 1Q24

GLS tenders played a significant role in the investment volume.

Investment volume hit fell 34.7% YoY to $4.0b in 1Q24, Colliers reported.

The investment volume also fell across segments, with the commercial sector posting the largest decline of 52.7% QoQ.

Commercial sales in 1Q24 were $1b, bolstered mainly by Frasers Centrepoint Trust's acquisition of a 24.5% stake in NEX and the sale of Seletar Mall to Allgreen Properties.

Residential sales also declined 47.6% QoQ to $1.8b. The sector was boosted by the GLS sites, increasing the residential transaction volume by $1.2b. 

Government Land Sales (GLS) tenders played a significant role in the investment volume, contributing $1.2 billion, or 31.5% of the total for the quarter.

Excluding GLS deals, the retail sector accounted for the biggest chunk of the investment volume at 40%, followed by hospitality (20.5%) and industrial sectors (11.0%).

The sale of a freehold high-tech industrial building for $140.0m boosted the numbers of the industrial sector.

For 2024, Colliers expects investment sales to be 5% to 15% higher than 2023, between $22b and $24b.