Source : Channel NewsAsia - 8 Apr 2009
Singapore’s investment property market was quiet in the first quarter of the year, as the global recession continues.
The first three months of 2009 saw only 10 investment transactions, compared to 15 in the fourth quarter of last year.
All the deals were below S$40 million.
Real estate adviser DTZ said all the investment sales in the first quarter took place in the private sector.
This is partly due to the fact that government land sales through the confirmed list had been suspended and no reserve site was triggered.
DTZ added that private sales are expected to dominate for the rest of this year.
In addition, it said total investment sales plunged 58 per cent to S$153 million in the first quarter of this year.
This is the third lowest amount since 1998.
DTZ said residential investments contributed the most in total sales at 46 per cent in the first quarter.
The office sector was next with 34 per cent of total sales in the same period.
Investment sales in the industrial sector on the other hand fell the most in the quarter.
It dropped by 80 per cent to S$25 million.
DTZ’s senior director for investment advisory services and auction, Shaun Poh, said, “Activity in the investment market could pick up in the late part of the year when the economy is expected to recover and lending conditions ease. The market is not short of interested investors with money on hand, looking for prime properties.”
DTZ noted however, that there’s currently a mismatch in bid-ask prices, hampered by tight credit and expectations of falling rents.
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