Singapore Investment Market Update Q4 2020

Singapore Investment Q4 2020

STRING OF MAJOR DEALS IN Q4 SIGNAL THE START OF RECOVERY

• Investment sales in 2020 totalled some S$23.1 billion, representing a decline of 24.0% on a year-on-year (y-o-y) basis from S$30.4 billion in 2019, due to the effects of the recession caused by the COVID-19 outbreak.
  
  
• The pandemic hamstrung the property market in various ways. The lack of physical viewings due to strict measures implemented during the circuit breaker from 7 April to 1 June 2020, the postponement of Government Land Sale (GLS) site launches, as well as the lower overall volume of resale investment activity (notwithstanding transfers from related institutional entities), collectively dampened real estate transactional activity across all sectors in much of the year.
  
  
• Investment activity only picked up in Q4 2020 with the resumption of business operations and the increase in properties being put up for sale. Total sales amounted to S$13.2 billion in the quarter, signifying an expansion of 67.1% y-o-y. The nascent momentum driven by realignment among related Real Estate Investment Trusts (REITs), growing investor interest as well as sellers’ willingness.