Singapore property investment sales soar 63% to S$6.4b in Q2

Residential deals accounted for the majority of the investment activity.

Despite the subdued real estate investment sales climate in Singapore in the first half of the year, a report by Knight Frank revealed that total investment sales value improved 41.2% q-o-q and 63.3% y-o-y, reaching S$6.4 billion in Q2 2024 (Exhibit 1). 

“Residential deals totalled S$4.2 billion in sales value and continued to make up the bulk of investment activity. Compared to Q1 2024, residential investment sales activity increased 100.5% from S$2.1 billion in the previous quarter,” the report added.

Here’s more from Knight Frank:

Additionally, awarded government land sales (GLS) sites for residential use located at Zion Road, Holland Drive, Upper Thomson Road and River Valley Green amounting to S$3.2 billion topped the list of investment sales for the quarter (Exhibit 2). 

Commercial property deals increased by 21.1% q-o-q to S$1.8 billion in Q2 2024, led by the sale of large commercial buildings such as Mapletree Anson for S$775.0 million and Delfi Orchard for S$439.0 million in May (Exhibit 2). As the prohibitive Additional Buyer’s Stamp Duty (ABSD) culled much interest in properties with residential use by foreign investors and high net worth (HNW) families, shophouses remained the preferred asset type for these buyers who purchased such heritage properties with a view towards capital appreciation. 

In contrast, momentum in the industrial sector slowed, as total sales value declined by 24.8% q-o-q and 67.2% y-o-y to S$330.0 million in Q2 2024. Some industrial deals that closed in the quarter were the sale of BHL Factories for S$74.0 million in May and Homestay Lodge, a worker dormitory located at 31 Kaki Bukit Avenue 3 for S$63.5 million in June.