COTD: Real estate investment sales rise 22.7% in Q3, private deals lead

Private deals accounted for 70.9% of the total investment value in Q3.

Investment sales in Q3 2024  increased for a second consecutive quarter, climbing 22.7% quarter-on-quarter (QoQ), Savills reported.

On a year-on-year (YoY) basis, investment sales for the first three quarters of 2024 reached $18.85b, representing a 32.6% increase from the $14.21b in the same period last year.

Private investment sales accounted for 70.9% of the total investment value in Q3, whilst the remaining 29.1% comprised five state sites sold under the Government Land Sales (GLS) Programme, which fell by 25.9% QoQ to $2.3b.

Investment sales in the commercial sector surged by 51.7%, reaching $2.45b, primarily due to the rebound in strata title office sales, with nine transactions each worth over $10 million, totaling $286.3m in Q3.

Notable transactions include The Hour Glass' purchase of two levels of office units in Tong Building for $68.5m.

“Given that the big-ticket items transacted in the third quarter are unlikely to be repeated in Q4, along with the rejection of the Jurong Lake District land bid by the authorities, we maintain our forecast of S$22 to S$23 billion for the full year,” Alan Cheong, Executive Director for Research & Consultancy at Savills Singapore said.

“Although interest rates have fallen, there is still a large spread between net yields and total borrowing costs. We may see one or two mega deals conclude in the coming quarters, but it is our opinion that investment sales will generally be driven by the return of ultra-high-net-worth individuals. This will set the narrative for 2025,” he added.