SG Real Estate Investment Increases By 67% in First Quarter of 2017

A report by property services firm JLL has shown that real estate investment deals in Singapore has increased by 67.4% from $2.98 billion in the fourth quarter of 2016 to $4.99 billion in 2017 dated from January to the end of March.

Office Sales an Important Contributor

The office sector was an important contributor to this increase as there was a 60% difference in the amount of capital invested in the sector in the first quarter of 2017 compared to the previous quarter of 2016. It is also the only sector that exhibited growth in the overall real estate investment statistics in Singapore coming into 2017 from the last quarter of 2016, with a whopping 47.5% in private investment sales.

These impressive numbers in sales in the office sector has not been seen since almost a decade ago when the sales of properties in One George Street and that of the Singapore Power Building hit a high of $3.4 billion.

Sales of the PwC Building and Plaza Ventures

Fast forward to present day, the two top sales recorded in the office sector this time around are that of the entire interest in the PwC Building, sold to a Manulife Financial Corporation indirect subsidiary for $760.60 million and the entire interest in Plaza Ventures to Fullshare Holdings for $725.21 million.

Residential property sales in second place

Coming in at second place in terms of investment sales for the first quarter’s private sector is the private sales market of residential properties that are worth more than $5 million. There was a fall of 35.3% coming in to this first quarter of 2017 from the final quarter of 2016 with a 37.3% in market share.

A fall in numbers for the retail and industrial sectors

Retail and industrial properties worth $5 million and above fell by more than 50% in private sales from the previous quarter and the numbers recorded for each sector did not even make 10% in the private sector investment sales.