Tuesday, July 21, 2009

Colliers says property investment activity rose in Q2


Source : Channel NewsAsia – 21 Jul 2009

Property consultancy Colliers International said the Singapore investment sales market experienced a surge of activity in the second quarter this year.

Both the private and public sectors garnered investment sales transactions totalling S$1.35 billion from April to June, nearly four times higher than the previous quarter.

Colliers said the renewed buzz in the investment market was supported mainly by returned interest following price corrections.

A turnaround in market sentiment on the back of improved economic outlook and the stock market rally also fuelled the increased activity.

For the residential sector, Colliers said market sentiment is likely to stay upbeat over the next six months, barring major setbacks like poor economic data.

However, it notes that home buyers remain price-sensitive.

As such, sentiment must remain good and prices must be controlled for average monthly home sales to remain above the 1,000 units level for the rest of the year.

On the industrial sector front, Colliers is predicting that the rents and capital values of industrial space could decline by up to 15 per cent for the second half of the year.

That’s due to a large supply looming amid lower demand.

For the retail sector, the consultancy is forecasting that rents of retail space, especially those in Orchard Road, will contract by five to 10 per cent over the next 6 months.

And in the office space, Colliers expects rents and capital values of islandwide Grade A office space to remain depressed.


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