Monday, December 28, 2009

Increasing trend of larger property deals, says DTZ Research

Property deals in the Singapore market just got bigger in the final quarter of this year, according to global property adviser DTZ Research.

The value of property transactions in the fourth quarter are larger compared to the trend of small deals in the first three quarters of 2009.

Eight transactions above S$100 million each accounted for 77 per cent of total transaction value in the fourth quarter, which is significantly higher than the 48 per cent in the third quarter and none in the first and second quarters.

Total investment value in the fourth quarter totalled S$2.5 billion and is similar to the amount posted in the third quarter this year.

The combined amount of investment made in the third and fourth quarters accounts for 83 per cent of 2009’s total investment value of S$5.9 billion.

The residential sector was the best performing sector in 2009, contributing 50 per cent of the total transaction value. This sector also chalked up S$1.4billion or 56 per cent of total investment sales in the fourth quarter, with deals such as the collective sale for Dragon Mansion.

The second best performer this year was retail which contributed 16 per cent to the full year transaction value. Among the big deals in this segment is the sale of Clementi Mall in November for S$541.9 million

Looking ahead, 2010 is expected to be a more active year due to improving market sentiment, according to DTZ Research.

The residential sector will continue to dominate in 2010, with much activity coming from the government land sales programme.

Source: Channel News Asia, 28 Dec 2009

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