Real Estate Investment Volume In Singapore Drops 31.8% In 2019

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CBRE, however, does not expect the trend to continue considering the build-up of unsold housing stock. The government has also reduced the supply of land for residential development under the first half of 2020’s GLS programme. The office sector accounted for 31.1% of this year’s investment volume, while the hospitality sector saw transaction volumes quadruple to $2.15 billion in 2019 from $544.7 million in 2018. The hike was mainly driven by growing tourist arrivals from new attractions as well as major events, exhibitions and conferences held within the city-state. Looking ahead, CBRE Senior Executive Director of Capital Markets Michael Tay expects investment volume for 2020 to remain resilient due to anecdotal evidence of investors exhibiting interest in Singapore assets, which could boost foreign capital inflows. The city-state registered a higher proportion of foreign capital in 2019 at 31.1%, versus 2018’s 24.3%. Tay expects lower interest rates to support strong capital flows into real estate, with active fundraising and cheap debt in the capital markets. Ref: Propertyguru