These were the key drivers of Singapore’s hefty S$7b property investments in Q3 | Real Estate Asia
, Singapore

These were the key drivers of Singapore’s hefty S$7b property investments in Q3

Find out some key deals in the public and private sectors.

The real estate investment market in Singapore recorded S$7.07 billion worth of deals in the third quarter of 2023, double the S$3.54 billion achieved in the previous quarter, according to a report from Savills. 

In the public sector, the report said seven land parcels under the Government Land Sales (GLS) Programme were awarded for a total value of around S$4.16 billion, contributing 58.8% to the quarter’s total investment sales. Because of the sale of several large sites, such as the residential sites at Marina Gardens Lane (S$1.21 billion) and Jalan Tembusu (S$828.8 million), and the commercial and residential site at Tampines Avenue 11 (S$1.03 billion), this is the highest quarterly value recorded under the GLS Programme since Q3/2011. 

Here’s more from Savills:

Private housing market activity has begun cooling in recent months. The hefty 60% Additional Buyer’s Stamp Duty (ABSD) for foreigners has sharply curtailed demand from this group of buyers, especially in the high-end market segment. For locals and permanent residents, rising mortgage rates and economic challenges have affected sentiment. 

For developers, caution prevails, and this is evidenced by their subdued response to state tenders of private housing sites. For example, a land parcel in Jalan Tembusu fetched just two bids, with the top bid of S$1,069 per sq ft per plot ratio (psf ppr) about 18% lower than the S$1,302 psf ppr paid for a site across the road in January 2022. 

Similarly, just two offers were submitted for a site at Lentor Close, while the winning bid of S$982 psf ppr was 0.3% below the S$985 psf ppr achieved for a site located in the vicinity which was awarded five months ago. Amongst the six GLS sites in Lentor Hills Estate which have been awarded since July 2021, this price is the lowest. 

The private sector logged in S$2.91 billion of transactions in the quarter, on par with a quarter ago. Buying activity in the private sector, however, was subdued. There were 63 deals recorded, representing a 35.7% drop from the 98 transactions in Q2/2023. The Hungry Ghost Month, the 60% ABSD for purchasing residential properties by foreign buyers and the high interest rate environment were the likely reasons behind the decline. 

The most notable deals in the private sector include the S$910 million collective sales of Far East Shopping Centre - a 999-year leasehold commercial property along Orchard Road - to a company linked to Bright Ruby Resources and Chinese businessman Du Shuanghua, and the S$525 million sale of PARKROYAL on Kitchener Road by United Overseas Land to an entity of Worldwide Hotels Group, the owner of Hotel 81 in Singapore.


Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


How Metland Indonesia deals with weaker residential purchasing power
The real estate firm continues to expand with residences that are attractive to consumers because of pricing, the ‘growing house’ concept, and sustainable features.