48% hike in Singapore property investments: DTZ Research

by Romesh Navaratnarajah

Singapore witnessed healthy purchasing demand from home buyers and investors in Q2 2012 despite worries over the Eurozone debt crisis, according to DTZ Research.

Property investment rose by 48 percent to S$6.9 billion in the second quarter thanks to more local and cross-border investment, said the firm.

Cross-border investment contributed 16 percent of property investment activity in Q2, while Government Land Sales (GLS) accounted for 43 percent of overall investment value.

At the same time, cross-border investment went up 43 percent to S$1.1 billion from S$767 million in Q1, attributed to regional funds which accounted for 57 percent of total cross-border investment.

Investments included Prudential's Asia Property Fund's acquisition of Compass Point in a joint venture (JV) with Frasers Centrepoint and Blackstone Group's purchase of StarHub Green.

Looking ahead, the bulk of investment activity in the second half of 2012 is expected to come from Reits (real estate investment trusts) and sales of government land sites, noted DTZ.

Meanwhile, new benchmark prices in the residential segment have driven buyers to the secondary market, resulting in higher resale volumes of private homes last quarter.

DTZ expects private home demand to remain robust while the solid pipeline of projects will increase competition for purchases and tenants, as well as limit price growth.

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