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Singapore’s property investment sales in 2015 drop to record low since 2009

Singapore’s property investment sales in 2015 drop to record low since 2009

SINGAPORE: Singapore’s property investment sales in 2015 declined by 15 percent to 16 billion Singapore dollars (11.3 billion U.S. dollars), the lowest sales volume since 2009, according to a report on Tuesday by DTZ Southeast Asia, a real-estate consulting firm headquartered in Singapore.

The fall in investment sales in 2015 was largely due to the mismatch of price expectations between buyers and sellers, and the slowdown in launches of new land parcels from the Government Land Sales (GLS) program, according to the report.

Property sales by government agencies fell by 13 percent in 2015 while private investment sales fell by 8 percent as there was a mismatch in the price expectations between buyers and sellers.

Sales were also affected by the uncertainty in global markets, as local investors seek to diversify their portfolio by growing their asset pool overseas.

Notwithstanding, there was still much interest for Singaporean properties in 2015 given the country’s good governance and dynamic economic environment, DTZ noted.

Additionally, investors are willing to bid for leasehold projects that are priced reasonably and have the potential to be value added through redevelopment or additions and alteration works.

Going forward, DTZ expects the real estate investment market in Singapore to present interesting opportunities to investors in 2016.

“As owners’ review their portfolio of assets to adapt to current economic conditions, there will be more offerings that are rarely listed on the market, and are reasonably priced as well,” Ms Swee Shou Fern, DTZ’s Senior Director of Investment Advisory Services commented.