Singapore real estate investment sales to exceed $25b in 2024

In Q2, volumes will be supported by several GLS tender closings.

With brighter economic prospects in 2024 and growing confidence that interest rates have peaked, analysts from Cushman and Wakefield said in a report that they expect investment activity in Singapore to gain momentum over the next few quarters. 

“Given current investment momentum, we are sanguine that total investment sales could surpass $25.0b this year, compared to $19.2b in 2023,” the report said.

Here’s more from Cushman and Wakefield:

The upcoming quarter’s investment volume should be supported by the tender closings of several GLS sites, which include the mega 6.5-hectare white site at Jurong Lake District (JLD). 

Given resilient consumer spending and continued travel recovery, retail and hospitality assets have returned to investors’ radars. Retail and hospitality net yields remain higher (about 1% point higher) compared to office net yields, which is appealing to investors given current still-high interest rates. Potential retail and hospitality deals include Citadines Raffles Place, which is reportedly undergoing a sale process, as well as retail mall Liv@Changi and a freehold hotel at 12 Lorong 12 Geylang, both of which have been launched on the market. 

While the residential collective sale market continues to face challenges into 2024, pockets of activities could still surface, especially for small to medium-sized sites as developers continue to seek out bite-sized opportunities to landbank.