Property investment sales to grow by 15% to 20% for whole of 2022
This despite a 36.9% decline in sales value in Q2.
Despite an overall decline in sales in Q2, Colliers said the market will still likely register a 15.0% YoY growth for 2022 to reach a transaction value of $32.6b.
“On a year-to-date performance, total investment value was S$17.7b for the first half of 2022,” Colliers explained.
The H1 figures reflect “improving demand and growing investor confidence,” added Colliers.
“Despite the geopolitical headwinds and external uncertainties that continue to plague the economy, Singapore’s safe haven status, as well as investors’ confidence in Singapore as a competitive and attractive business destination will continue to lend support to the market,” Colliers said.
Based on data from Colliers, sales value fell by 36.9% QoQ to $6.8b in Q2 from $10.6b in Q1.
The sales value of most sectors also took a dive in Q2, with the commercial segment posting the highest decline (-58.0% QoQ to $2.08b).
This is because mega deals for the sector were concluded in Q1, Colliers said.
“Q2 volumes were supported by the office sales of Comcentre and Westgate Tower, as one or two bigger deals rolled over into Q3,” Colliers added.
Residential and industrial sales likewise declined during Q2, dropping 17.6% QoQ to $2.54b and 29.0% QoQ to $239m, respectively.