Savills: Real estate investment volume totals $24.7 bil in 2022, down 1% y-o-y

The business section viewed a bounce back in negotiable venture, broadening 28.4% q-o-q to $1.02 billion in 4Q2022 after two continuous quarters of decline. The return is mainly attributed to a 166.1% q-o-q development in office financial investment sales from $251.4 million in 3Q2022 to $668.9 million in 4Q2022, states Savills.

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On the other hand, reseller as well as commercial investment sales both decreased 34.9% and 48.1% q-o-q. Retail sales came off a relatively high base in 3Q2022 and the last quarter of the entire year observed a decline in retail industry strata sales and low deal values of shophouses.

Investment revenues value in Singapore came out at $24.7 billion for 2022, a downtrend of 1% y-o-y, according to an investment statement by Savills Singapore. For 4Q2022, the marketplace clocked $2.81 billion in assets sales, dropping 36.1% q-o-q– the third continuous quarter of loss– as a result of stalling market conditions, the report includes.

In 2023, Savills projects that the majority of Government Land Sales (GLS) locations available, the $2.16 billion sale of Jurong Point, including the sale of strata units at Thomson Plaza will improve the standard regular investment sales quantity.

Non commercial online sales stilled represent the most substantial sales value, comprising 49.9% of total financial investment sales value last quarter. Nevertheless, sales within this segment shared equally to $1.4 billion in 4Q2022. This was the 2nd succeeding quarter of downtrend this part documented last year.

” In spite of damaging economic as well as interest rate climate, provided the openness of the market as well as a positive perception of Singapore, overall financial investment sales price must still be afloat in 2023,” states Alan Cheong, executive chief of Savills Research. “While higher credit prices may hinder establishments, there still exists the opportunity of an expensive special offer or a series of medium-sized proceedings through this year.”

Savills anticipates total financial commitment sales worth for 2023 to total $24 billion to $25 billion, and activity to be damped by financial and prime interest rate headwinds.


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