Property investment sales predicted to drop to $21-$23b this year

Transaction volume seen to taper.

According to Knight Frank, the total investment sales in 2014 likely to see a moderate decline to around $21 billion - $23 billion.

Here's more:

2014 could be a muted year for the investment sales market with potential tapering in total transaction volume. As the government scales back its 1H 2014 GLS programme in the domestic property market, the outlook for the investment sales performance will primarily hinge on the private investment sales market.

Investment sales in the residential sector could weaken given the waning demand and fall in home prices.

Additionally, the possible ensuing market volatility from the tapering of quantitative easing by the US Federal Reserve could also adversely impact equity market performance and limit the amount of flotation of REITs in the market.

The rising prices of land and property assets in Singapore and the onslaught of property cooling measures are diverting investors’ attention towards overseas markets. The stronger Singapore Dollar against most other currencies has enhanced investors’ appetite to invest overseas.

Local developers are also venturing and expanding their presence abroad in response to the challenging local property market.

One example is the overseas expansion by local developer Oxley Holdings with their latest and biggest acquisition of East London 40-acre Royal Wharf development for approximately S$397 million.  

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