Singapore-based investors put in S$3.8b in overseas real estate in Q3: DTZ

SINGAPORE-BASED investors put in at least S$3.8 billion in overseas real estate markets despite a weaker global economy in Q3, according to data compiled by DTZ (SEA) Research.

Of this, more than S$1.8 billion was invested in Australia and S$1.2 billion in the UK.

In Singapore, private investment in office space also rose to S$828 million in Q3 2015 from S$465 million in Q2. Offices accounted for about 30 per cent of total real estate investment in Singapore, including the sale of three strata floors at Prudential Tower for S$100.6 million (reflecting an average price of S$2,750 per sq ft) to China Shipping, and the collective sale of Thong Sia building to Sin Capital Group for S$380 million.

Investment sales originating from the Government Land Sales (GLS) programme, which supported investment sales in Q2, contracted to S$490 million in Q3 from S$2.76 billion in Q2.

Lee Nai Jia, regional head (SEA) of research, at DTZ said: "While investment sales tend to be slower in Q4 than in Q3 historically, I anticipate that this may not be so for 2015. Firstly, the pending sale of Asia Square Tower 1 is likely to boost investment sales in 2015 by around S$3.5 billion. Additionally, there are several major real estate deals in the pipeline, including CPF building along Robinson Road and Robinson 77, which will boost investment sales above S$12 billion if the deals go through."

He also noted that there will be more sales originating from state tenders with four residential sites still yet to be awarded on the H2 GLS Confirmed List with the exception of a residential site at Lorong Lew Lian on the Reserve List.

"On the whole, we expect total investment sales to hover around the range of S$14 billion to S$17 billion," said Dr Lee.