Singapore Investment Sales | Lush Dream Home

Tag Archives: Singapore Investment Sales

Q3 investment sales jump 71%: report

Posted on 29 Sep 2009 | Comments Off

CBRE raises total sales forecast for 2009 to $7.5b from $2b 3 months ago

THE investment sales market continued to improve in Q3, boosted by a large number of good class bungalow (GCB) transactions, according to a new report.

Total investment sales in the current quarter have so far amounted to $3.28 billion, an increase of 71 per cent from the previous quarter, said CB Richard Ellis (CBRE) in its report yesterday.

With the strong showing, CBRE is bumping up its forecast for total investment sales for the whole of 2009 to as much as $7.5 billion. Three months ago, the property firm estimated that total sales would exceed $2 billion by end of the year.

In Q3, residential investment sales made up the bulk of the transaction volume. Residential investment sales – including GCB sales – accounted for $2.2 billion in transacted value, or 67 per cent, of the quarter’s total investment sales. This is 92 per cent higher than the $1.2 billion residential investment sales recorded in Q2.

And to date, GCB sales have made up a quarter of total residential investment sales in Q3, with 35 GCB sales between July and September totalling some $535 million. Several of these GCBs were sold for above $1,000 per square foot of land and these included the sale of 6 Leedon Park for $19.4 million, and 42 Dalvey Road and 12 Bishopsgate for $19.0 million apiece. Continue reading →

Comments Off on Q3 investment sales jump 71%: report

Posted in Property Market / Real Estate

Tagged Good Class Bungalows (GCB), Investment Sales, Singapore Investment Sales, Singapore Property, Singapore Property Market

Green shoots, firm roots

Posted on 24 Sep 2009 | Comments Off

As buyer interest returns to the market, we can expect to see increased activity from institutional investors drive up transactions next year

INVESTMENT sales have been rising steadily throughout the year. From $304 million in the first quarter, transactions have jumped more than tenfold to $3.1 billion by Q3 of 2009. While we expect total transactions this year to be far below the 2008 total of $17.9 billion, coming in the wake of the global financial crisis, it will still be a credible result. Nearly half of the transactions have come from the residential sector while the commercial real estate sector makes up the remainder.

Recovering? As the MAS’ monthly banking survey shows, lending to businesses in the building and construction industry has remained stable with $50 billion in lending in January dropping slightly to $48 billion in July

Unlike the red hot residential segment, transaction volume in the commercial segment has occurred at a more measured pace. There was a 10-month lull in the office market before it stirred with the sale of Parakou Building and Anson House in April this year. Parakou was sold for $81.38 million, or $1,287 per square foot (psf) while Anson House transacted at $85 million with a psf price of $1,100.

VTB Building, Cecil House and Aviva Building were later sold for between $710 and $1,061 psf at transaction sizes between $36 million and $71 million, all to the same buyer. The buyer, a joint venture between Yi Kai Group and Fission Group, plans to redevelop the offices into a residential project, subject to approval. In the hospitality sector, the 50-room Hotel Nostalgia was sold for $22 million, or $440,000 per room – which represents a new high for boutique hotels. Continue reading →