Property investment sales predicted to drop to $21-$23b this year

[princess_morbucks]

Transaction volume seen to taper.

According to Knight Frank, the total investment sales in 2014 likely to see a moderate decline to around $21 billion - $23 billion.

Here's more:

2014 could be a muted year for the investment sales market with potential tapering in total transaction volume. As the government scales back its 1H 2014 GLS programme in the domestic property market, the outlook for the investment sales performance will primarily hinge on the private investment sales market.

Investment sales in the residential sector could weaken given the waning demand and fall in home prices.

Additionally, the possible ensuing market volatility from the tapering of quantitative easing by the US Federal Reserve could also adversely impact equity market performance and limit the amount of flotation of REITs in the market.

The rising prices of land and property assets in Singapore and the onslaught of property cooling measures are diverting investors’ attention towards overseas markets. The stronger Singapore Dollar against most other currencies has enhanced investors’ appetite to invest overseas.

Local developers are also venturing and expanding their presence abroad in response to the challenging local property market.

One example is the overseas expansion by local developer Oxley Holdings with their latest and biggest acquisition of East London 40-acre Royal Wharf development for approximately S$397 million.

- See more at: http://sbr.com.sg/residential-proper....3XfWcUw1.dpuf

[princess_morbucks]

On back of lower public land sales.
According to Colliers International, while developer interests towards State lands are expected to stay healthy, public land sales in 2014 are likely to fall below the $9.70 billion worth of State land sales concluded in 2013.
Being cognisant of all of the above, Singapore’s investment sales activity in 2014 is likely to shrink from 2013’s level and is forecast to range between $25.00 billion and $30.00 billion.
Here's more:
Public land sales are likely to fall below 2013’s level as the Government is now slowly tapering back on public land supply.
Under the 1H 2014 GLS Programme, some 36 land parcels including 16 sites on the Confirmed List and 20 sites on the Reserve List were introduced.
Collectively, these sites could potentially yield a total of 11,585 housing units (including 2,770 executive condominium units), some 2.08 million sq ft GFA of commercial space, 955 hotel rooms and some 3.94 million sq ft GFA of industrial space.
The 11,585 housing units that can be generated from the 1H 2014 GLS Programme are the lowest bi-annually quantum since the 1H 2010 GLS Programme when some 10,550 housing units were made available for sales. This also represents a 18.2% reduction from the 14,155 housing units provided under the 2H 2013 GLS Programme.
Similarly, the provision of some 2.08 million sq ft of commercial GFA and 3.94 million sq ft of industrial GFA under the 1H 2014 GLS Programme reflects a fall in the potential commercial and industrial space by some 28.0% and 18.4%, respectively as compared to the 2H 2013 GLS Programme.
Furthermore, no hotel sites will be made available for 1H 2014 as compared to three hotel sites that were made available under the Reserve List in 2H 2013.
- See more at: http://sbr.com.sg/residential-proper....pJ3xhugd.dpuf

[Royston8H]

Not a surprise new to see property investment amount in 2014 is going to drop further. The hillford is an exceptional though with a niche concept.

Transaction volume seen to taper.

According to Knight Frank, the total investment sales in 2014 likely to see a moderate decline to around $21 billion - $23 billion.

Here's more:

2014 could be a muted year for the investment sales market with potential tapering in total transaction volume. As the government scales back its 1H 2014 GLS programme in the domestic property market, the outlook for the investment sales performance will primarily hinge on the private investment sales market.

Investment sales in the residential sector could weaken given the waning demand and fall in home prices.

Additionally, the possible ensuing market volatility from the tapering of quantitative easing by the US Federal Reserve could also adversely impact equity market performance and limit the amount of flotation of REITs in the market.

The rising prices of land and property assets in Singapore and the onslaught of property cooling measures are diverting investors’ attention towards overseas markets. The stronger Singapore Dollar against most other currencies has enhanced investors’ appetite to invest overseas.

Local developers are also venturing and expanding their presence abroad in response to the challenging local property market.

One example is the overseas expansion by local developer Oxley Holdings with their latest and biggest acquisition of East London 40-acre Royal Wharf development for approximately S$397 million.

- See more at: http://sbr.com.sg/residential-proper....3XfWcUw1.dpuf

[Nas]

Not a surprise new to see property investment amount in 2014 is going to drop further. The hillford is an exceptional though with a niche concept.

I would agree or disagree, depending on your description of niche concept. Looking at the projects with strong sales, it's clear - quantum is the name of the game; in part due to TDSR. Hillford did well because of affordable quantum, but I wonder for a similar retirement village concept would it score if the size and price is higher.

[Royston8H]

Hillford is very expensive because it is only a 60 yrs leasehold, no different to many commercial properties.

Why affordable to many singaporeans? You can ask the developer how they did it. 99LH -> 60LH.

Who will want to retire in a "very affordable" unit like 394 sqft one. Unbelievable.

I would agree or disagree, depending on your description of niche concept. Looking at the projects with strong sales, it's clear - quantum is the name of the game; in part due to TDSR. Hillford did well because of affordable quantum, but I wonder for a similar retirement village concept would it score if the size and price is higher.

[Nas]

Then we are of agreement.

[Royston8H]

Haha. Perhaps the mktg works for sporeans since it is a new concept. Gd luck to the buyers.