The Business Times
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OUTLOOK 2023

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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