Singapore-based real estate consultant EDMUND TIE is reporting this week that property investor sentiment and activity continued to improve in 2Q 2021, driven by the steady momentum of the vaccination program.
Investment sales registered a quarter on quarter (q-o-q) growth of 15.4% at $5.48bn worth of transactions. Private investors once again led the charge, with the combined value of the top five private investment deals totaling $1.56bn, 28% of the total investment value in 2Q 2021.
Investment sales in 2Q 2021 were led by the residential sector, which contributed $3bn followed by the industrial sector with $0.9bn, 56% and 17% respectively of the total investment sales. $1.2bn of residential sales were from the Government Land Sales (GLS) program. As there was no land sale activity in 1Q 2021, the government's sale of three residential sites in 2Q 2021 drew intense competition with seven to fifteen bidders per site.
EDMUND TIE's senior director of research and consulting, Mr. Lam Chern Woon said, "The continued recovery of transaction activities in 2Q 2021 demonstrates the robust demand for real estate. Amid the positive market outlook, there is intense competition especially amongst developers who are looking to replenish their land banks. We expect to see more activity in certain industrial sectors such as research and development. For example, Ascendas Reit has acquired the remaining 75% interest in Galaxis, a business park in One-North which houses key growth sectors such as biomedical sciences, information and communications technologies and media, science and research institutes."
"Alongside the push towards advanced manufacturing, and with the increased availability of industrial land in 2H 2021, we expect an uptick of investment towards industrial properties," he added.