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OUTLOOK 2023
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Office investment sales headed for slow start in 2023 amid price gap, higher borrowing costs

Activity is expected to pick up when interest rate outlook clears, aiding price discovery

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Kalpana Rashiwala

Kalpana Rashiwala

Published Thu, Dec 29, 2022 · 05:50 AM
    • Income At Raffles at 16 Collyer Quay was sold for about S$1 billion in late-June 2022 to Singapore-based Bright Ruby Resources group.
    • Income At Raffles at 16 Collyer Quay was sold for about S$1 billion in late-June 2022 to Singapore-based Bright Ruby Resources group. PHOTO: YEN MENG JIIN, BT

    THE market for big-ticket sales of office assets is heading for a slow start in 2023 – after a weak performance in the last two quarters of this year.

    A significant buyer-seller price gap will continue to be a major hurdle in sealing deals – especially for income-generating office assets.

    “Institutional buyers will probably watch and wait for a few more months, for visibility on interest rates peaking before jumping in,” said Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore.

    Commercial & IndustrialSingapore officesSingapore property

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