Apr 11, 2013
Singapore's property investment market had a weak start to the year with the sales volume recording its second straight quarterly decline, noted a report from Colliers International.
Overall, property investment sales slumped 27.5 percent to S$7.11 billion in Q1 2013, following a milder 14.4 percent quarter-on-quarter decline in Q4 last year to S$9.8 billion.The sharp drop in property investment volume was mainly due to a slowdown in private sector sales, which fell 31.4 percent to S$4.38 billion in Q1 2013 from S$6.38 billion in the previous quarter.
On the other hand, property investment volume in the public sector fell by 20.2 percent to S$2.73 billion from S$3.42 billion previously.
“Notwithstanding the fall in sales value, the S$2.73 billion garnered by the public sector in Q1 2013 is still considered healthy given that a larger number of sites sold in the quarter were designated for lower value uses or have shorter tenure compared to the preceding quarter,” noted the report.
“Specifically, of the 14 land parcels awarded in the January to March quarter, six carry short land tenure of 30 years or less and two were designated for lower-value ancillary uses (i.e. petrol station and church). In contrast, none of the 16 land parcels awarded in the preceding quarter were for ancillary uses and only four carry with them short land tenure of 30 years or less.”
Info courtesy - PropertyGuru.com.sg