2Q2024 Investment Sales 536 Q O Q Bolstered Government Land Sales Savills
The property market in Singapore has seen a significant increase in investment sales, reaching a total of $6.48 billion in the second quarter of 2024. This is a 52.6% increase from the previous quarter, driven by government land sales (GLS) which accounted for four residential sites and one industrial site, totaling $3.16 billion. The most notable GLS sale was the Zion Road (Parcel A) site awarded to CDL and Mitsui Fudosan for a record-breaking $1.107 billion.
The private residential sector also experienced growth with a 14% increase in investment sales value to $3.32 billion in the second quarter. The luxury residential market in particular saw a revival, with 52 homes (40 landed properties and 12 luxury condos) priced at $10 million and above being sold. This is a 30% increase from the previous quarter and on par with the same period last year. The largest transaction in the landed property segment was a bungalow in the Bin Tong Park Good Class Bungalow Area which sold for $84 million. In the non-landed residential segment, a penthouse at Skywater Residences was sold for $47.3 million, making it the most expensive condo deal in the second quarter.
The commercial property sector also saw an increase in sales, rising by 16.7% to $1.52 billion. This was driven by four office block transactions, the largest being Mapletree Anson which sold for $775 million. Retail sales, however, saw a significant slowdown with only one transaction in the second quarter. The industrial sector also declined, totaling $272 million in investment sales.
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Despite these declines, Alan Cheong, Executive Director of Research and Consultancy at Svavills Singapore, maintains a positive outlook for the property market. He forecasts a total investment sales of $22 to $23 billion for 2024, up from $19.7 billion in the previous year. With the prospect of a rate cut this year, sentiments in the market may improve, and if the sale of large commercial properties continues, the investment market will see a return of momentum.