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Investment activity in Singapore’s property market got off to a slow start in 2023, with a 61% decrease y-o-y compared to 1Q2022, according to global real estate firm Knight Frank. Just $4.2 billion of investment sales were recorded in the first quarter of the year, the lowest since the introduction of the “circuit breaker” measures amidst the pandemic in 2Q2020.

JCube Condo Residence set to launch in 2023 and will be connected to Jurong East MRT and Westgate. It is set to feature residential units, commercial space and recreational/amenity facilities. CLD expects to launch the JCube Residence new development in second half of 2023, with potential to offer relief to housing shortage in Jurong and pent-up demand.

Residential deals dominated activity, with collective sales for Meyer Park, Bagnall Court and Holland Tower accounting for a total of $583.8 million. The sale of Holland Tower is the first successful residential en bloc transaction in the Core Central Region (CCR) since property cooling measures were imposed in December 2021, suggesting a return of interest in such locations, particularly amidst the reopening of China. Despite this, the collective sales environment remains a challenging one, with varying price expectations between sellers and developers.

Commercial deals were mostly quiet in 1Q2023, with the sale of 39 Robinson Road to Yangzijiang Shipbuilding standing out with its $399 million price tag. Investment in the industrial sector rose 62.8% q-o-q to $681.1 million. Notable transactions included the acquisition of four Cycle & Carriage properties by M&G Real Estate, and the disposal of 12 and 31 Tannery Lane by Ho Bee Land.

Knight Frank predicts that the pace of investment activity in Singapore “will get worse before it gets better”, due to macroeconomic uncertainties and volatile conditions in the global banking sector. Investment activity is anticipated to remain cautious in the face of potential repricing of assets in the commercial sector. As such, the consultancy has cut its projections for full-year investment sales from a range between $22 billion and $25 billion to a range between $20 billion and $22 billion.