Nicholas Wilson was recently interviewed by CNA Money Mind which helps us understand why commercial and industrial is a bright spot in the Singapore property market.
Commercial investment volumes in Singapore have experienced strong growth in the early months of 2021, as institutional investors focus their attention on the city-state. Investment activity at the top end of town has been particularly active, with several notable transactions over SGD 200 million taking place in the first quarter.
Singapore is still being seen as one of the most attractive investment propositions in a global context. This year, many prominent global investors have already undertaken large-scale acquisitions in Singapore, which is a great endorsement of their confidence in the market.
Cross border investors in Singapore have accounted for a larger share of overall transaction volumes than any other market in Asia Pacific so far this year. The more favourable macro situation, a positive long-term outlook, expansion by the tech sector, as well as redevelopment incentives offered by the Urban Redevelopment Authority (URA) have been some of the driving factors behind the surging investor demand.
This investment appetite has been shared across the major asset classes, including office, retail and industrial. Notable deals in the first quarter include the 50% share in OUE Bayfront, Yew Tee Point Shopping Centre and the establishment of the Boustead Industrial Fund.
Image of Singapore Central Business District which includes OUE Bayfront building. Photo credit: DoublePHOTO studio/ Shutterstock.com
There has also been a pickup in overall deal numbers so far this year, suggesting that it’s not just the institutional side of the market that has benefited from improving liquidity. There has been healthy deal flow across areas like the strata office market, shophouses and other assets in the sub-$50 million-category.
Steven Tan, Executive Director of Capital Markets and Investor Services for Singapore said, “there has been a growing interest in several areas of the market this year, not least the shophouse and industrial sector”.
Steven Tan, Executive Director of Capital Markets and Investor Services for Singapore said, “there has been a growing interest in several areas of the market this year, not least the shophouse and industrial sector”.
“The flexibility of uses in the shophouse market, as well as the scarcity factor and the more manageable investment size has drawn in a large pool of investors all looking to get exposure to the sector. The industrial and logistics segment has also been a key beneficiary of increased R&D expenditure as well as ongoing e-commerce and technology adoption. This has supported investor interest in high-tech industrial, data centres and logistics warehouses.”
Looking forward, confidence in the market remains high, despite the recently announced COVID-19 measures put in place. Investors are generally seeing it as an early move to take control of the situation and are looking through the short-term news towards the longer-term prospects. Fundamentals.
Transaction pipelines remain active, which will continue to support transaction volumes through to the end of the year. As a result, Colliers expect transaction volumes in 2021 to surpass the level seen in 2020 and make their way back towards pre-pandemic levels by the end of the year.
Nicholas Wilson was recently interviewed by CNA Money Mind which helps us understand why commercial and industrial is a bright spot in the Singapore property market.
Transaction pipelines remain active, which will continue to support transaction volumes through to the end of the year. As a result, Colliers expect transaction volumes in 2021 to surpass the level seen in 2020 and make their way back towards pre-pandemic levels by the end of the year.
Nicholas Wilson was recently interviewed by CNA Money Mind which helps us understand why commercial and industrial is a bright spot in the Singapore property market.
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