Wednesday, September 16, 2009

Property investment sales up 13% in Q3 to S$1.8b


Source : Channel NewsAsia – 16 Sep 2009

Property investment sales rose 13 per cent between July and September to S$1.8 billion, compared to the previous quarter.

The improved performance was buoyed by better market and investor sentiments.

In its latest report, property consultancy Jones Lang LaSalle said the residential sector dominated investment sales, accounting for 52 per cent of total sales.

Investment sales in the residential sector for this quarter totalled S$958 million. These include the sale of 24 Good Class Bungalows and 47 landed properties worth above S$5 million each.

With affordability remaining a key factor, Jones Lang said most investment transaction deals were still concluded below the S$100-million mark.

The exceptions were the two largest transactions in this quarter that came from the commercial sector.

The Suntec Convention Centre was injected into the ARA Harmony Fund, in which Suntec REIT holds a 20 per cent stake, for S$235 million.

K-REIT also joined the acquisition spree by purchasing six floors of its partially-owned Prudential Towers for S$106 million from Asia Property Fund.

This transaction boosted K-REIT’s ownership of this building from 44 to 73 per cent.

Jones Lang said the encouraging performance of the investment sales market is testament to the liquidity still available in the market.

Along with improving economic sentiments, Jones Lang said this market is expected to improve with more transactions expected by the end of the year.


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