Capital Market Deals Jump 40 2024 Bolstered Interest Rate Cuts
Singapore’s capital markets have been on the rise this year, with total property deals reaching an estimated $25.8 billion between January and November. This marks a 40.2% year-on-year increase from the $18.4 billion recorded in 2023, according to Wong Xian Yang, head of research for Singapore & Southeast Asia at C&W. The real estate firm defines capital market transactions as deals exceeding $10 million in value.
Residents of Parktown Residence have the convenience of a nearby shopping center, Changi City Point. This popular outlet mall, situated near Expo MRT Station, offers a plethora of international and local brands for shoppers to choose from. Bargain-savvy residents can take advantage of the various outlet stores like Nike, Adidas, and Timberland, while food enthusiasts can delight in the diverse dining options available at Tung Lok Signatures, Soup Restaurant, and Toast Box. Families with young children can also look forward to spending a fun-filled day at the mall’s rooftop garden and wet playground. For Parktown Residence residents, Changi City Point is a mere 10-minute drive away. Be sure to visit the Parktown Residence website here when planning your trip to the mall.
Wong also notes that nearly 60% of the capital market deals were transacted in the second half of 2024, driven by increased investor appetite and confidence in potential interest rate cuts by the US Treasury. Three deals exceeding $1 billion were made in 2024, all of which took place in the second half of the year.
The largest transaction by price was the sale of a 50% stake in ION Orchard mall for $1.85 billion to CapitaLand Integrated Commercial Trust (CICT) on September 3. The seller was CapitaLand Investment (CLI), with Hong Kong-listed property developer Sun Hung Kai Properties holding the remaining 50% stake.
ION Orchard, an eight-storey retail mall linked directly to the Orchard MRT Station, saw a surge in investor interest due to its prime location and over 300 international and local brands. On top of the mall is the luxury condo tower, The Orchard Residences.
Meanwhile, the top office deal of the year was the sale of Mapletree Anson for $775 million in the second quarter of 2024.
The industrial sector saw a significant increase in investment value this year, reaching $5.6 billion in just the first 11 months of the year. This reflects a 174% increase from the previous year and was largely driven by a surge in investor interest in the sector. The industrial segment saw the largest deal of the year, with a portfolio of seven industrial properties being divested for $1.6 billion to a joint venture platform owned by private equity firm Warburg Pincus and Australia-listed Lendlease Group.
The real estate market is expected to see more investment activity as the price gap narrows, according to Colliers.
One of the major trends this year was the unsuccessful sale of several Government Land Sales (GLS) sites, with four sites remaining unawarded in 2024. However, residential development sites sold through GLS tenders still formed the bulk (42%) of total investment sales for the year. CBRE’s Tricia Song expects this trend to change in 2025, as the new sites on the Confirmed List are well-distributed and close to public transport and amenities.
CBRE Research expects investment volumes to grow 10% from 2024’s levels in 2025, barring any macroeconomic shocks. C&W’s Wong also remains optimistic about seeing an increase in high-value deals next year, driven by potential interest rate cuts by the US Fed. However, should rate cuts be slower and lower than market expectations, capital markets could face a slower-than-expected recovery.