Property investment transactions up

Property investment transactions up

Low interest rates helped send investment spending on property rocketing in the second quarter, with the residential and commercial segments thriving.
Investors stumped up $7.4 billion during the three months to June 30, 52.4 per cent over the $4.9 billion laid out in the first quarter, according to Savills Singapore yesterday.

The public sector accounted for $3.1 billion in the second quarter. This includes private developers buying land through the Government Land Sales (GLS) programme. There were 15 sites - 11 residential, three industrial and one hotel - sold through the GLS, reaping about $2.9 billion.

Private sales volume swelled nearly 60 per cent in the second quarter from the first, reaching $4.3 billion.
Investment sales in the private, divided by segments, residential took the lead with $4 billion, or 54 per cent, of overall investment sales.

The participation level in recent GLS tenders show developers have become more selective due to the ample supply of land released by the Government, and sensitive to competition from existing (or in the pipeline) projects in the vicinity.

Commercial investment sales amounted to $2.3 billion, a two-fold increase from the first quarter's $1 billion.
The segment, which includes strata-titled offices and shophouses, is luring investors from the residential sector, which has been hit with cooling measures.

Source: The Straits Times – 21 July 2012