Savills: Real estate investment volume totals $24.7 bil in 2022, down 1% y-o-y
The commercial section saw a bounce back in transactional activity, expanding 28.4% q-o-q to $1.02 billion in 4Q2022 after 2 continuous quarters of downturn. The rebound is primarily credited to a 166.1% q-o-q development in office financial investment deals from $251.4 million in 3Q2022 to $668.9 million in 4Q2022, says Savills.
Investment revenues worth in Singapore came in at $24.7 billion for 2022, a downtrend of 1% y-o-y, according to an investment document by Savills Singapore. For 4Q2022, the marketplace clocked $2.81 billion in assets sales, slipping 36.1% q-o-q– the 3rd continuous quarter of decrease– because of decreasing market problems, the report adds.
Non commercial revenues stilled account for the best significant sales worth, making up 49.9% of total financial investment sales value past quarter. Nonetheless, sales in this sector divided equally to $1.4 billion in 4Q2022. This was the second successive quarter of decrease this sector captured in 2015.
” Regardless of damaging financial and also interest rate conditions, given the openness of the market as well as a positive perception of Singapore, complete financial investment sales worth should still be profitable in 2023,” states Alan Cheong, executive manager of Savills Research. “While higher loaning costs might hamstring establishments, there still exists the opportunity of a big-ticket agreement or a collection of medium-sized transactions through this year.”
On the other hand, reseller and also commercial assets sales each decreased 34.9% and 48.1% q-o-q. Retail sales came about a relatively high base in 3Q2022 and the end quarter of the entire year found a downtrend in retail industry strata sales plus lower transaction worths of shophouses.
In 2023, Savills expects that the greater number of Government Land Sales (GLS) locations on offer, the $2.16 billion sale of Jurong Point, including the sale of strata units at Thomson Plaza will uplift the baseline average investment sales volume.
Savills anticipates full-scale investment sales value for 2023 to total $24 billion to $25 billion, as well as event to be damped by economic and prime interest rate headwinds.