In the longer term, Singapore remains an attractive and top investment destination with an average growth of 5% per annum in 2019-2024. Colliers recommends investors to review portfolios and focus on opportunities that have emerged for properties with long term growth.
Overall real estate investment sales declined 36.9% quarter-on-quarter (QOQ) in Q1 2020 and 15.8% year-on-year (YOY) to S$3.9 billion (US$2.8 billion) as the coronavirus (COVID-19) pandemic and recession risks dampened investors confidence.
In the absence of big-ticket deals in Q1, investment volume eased across all sectors aside from Residential, which took the lead, boosted by strong public land sales. Developers are still active, albeit cautious, and Colliers Research expects the market sentiment to recover in the longer run. The commercial sector remains the most attractive for investors, with office and retail activities in 2020 expected to match 2019's levels mainly on the merger between CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT) in Q2, which involves S$9.5 billion (US$6.6 billion) of commercial assets.
Despite a forecasted 24% drop YOY, Colliers Research projects that Singapore real estate investment sales volume could grow on average by 5% per annum over 2019-2024, reinforcing Singapore's status as an investment safe haven.
Download Colliers' quarterly report on the real estate investment sales market in Singapore for Q1 2020 as we examine the latest shifting trends, with expert recommendations and outlook for real estate investors.