Singapore’s capital market property deals are estimated to have reached $25.8 billion in value between January and November this year, according to Wong Xian Yang, the head of research for Singapore & Southeast Asia at real estate services firm C&W. This is a 40.2% increase from the $18.4 billion recorded in 2023. C&W defines capital market transactions as deals with values exceeding $10 million.
Wong also reported that almost 60% of the capital market deals were made in the second half of 2024, driven by growing investor interest and confidence in expected interest rate cuts by the US Treasury. There were three deals worth more than $1 billion in 2024, all of which took place in the second half of the year.
The largest transaction by absolute price was the sale of a 50% stake in ION Orchard mall for $1.85 billion to CapitaLand Integrated Commercial Trust (CICT) on September 3. The seller was CapitaLand Investment (CLI), while Hong Kong-listed property developer Sun Hung Kai Properties holds the remaining 50% stake.
ION Orchard is an eight-storey retail mall located in the popular shopping district and directly linked to the Orchard MRT Station. It has a net lettable area of over 623,000 square feet and is home to more than 300 international and local brands. On top of the mall is the 54-storey, 175-unit luxury condo tower, The Orchard Residences.
The highest-valued office deal of the year was Mapletree Anson, which sold for $775 million in the second quarter of 2024. This was followed by a surge of investment in industrial assets, with a total of $5.6 billion invested in the first 11 months of 2024. This reflects a 174% increase from the previous year.
The biggest deal in the industrial sector was the divestment of a portfolio of seven industrial properties in Soilbuild Business Space REIT for $1.6 billion to a joint venture owned by private equity firm Warburg Pincus and Australia-listed Lendlease Group in August. The portfolio includes 4.5 million square feet of business parks and specialist facilities in sectors such as life sciences, technology, advanced manufacturing, and logistics.
Singapore’s cityscape is characterized by towering skyscrapers and state-of-the-art infrastructure. Condominiums, strategically located in desirable locations, offer a harmonious mix of opulence and convenience, making them highly sought after by both locals and foreigners. These residences boast an array of facilities, including swimming pools, fitness centers, and security services, elevating the standard of living and making them highly desirable to potential renters and buyers. For investors, these desirable features equate to higher rental incomes and a steady increase in property values over time. Additionally, with the addition of top-of-the-line projects such as Singapore Projects, the appeal of Singapore’s condo market remains robust.
In terms of Government Land Sales (GLS) sites, four sites that were put up for sale in 2024 failed to be awarded. However, the residential segment still made up 42% of the total investment sales for the year, with three sites on the Confirmed List for 2024 rejected by the Urban Redevelopment Authority due to low bid prices.
Despite the unsuccessful sale of several GLS sites, CBRE Research does not anticipate this trend to continue in 2025 as new sites on the Confirmed List are well distributed and located near MRT stations and amenities.
Looking ahead, both C&W and CBRE Research expect an increase in high-value deals next year, with the US Federal Reserve expected to make further interest rate cuts. CBRE Research predicts a 10% growth in investment volumes from 2024 to 2025. However, a slower-than-expected recovery could occur if there are any macroeconomic shocks or if rate cuts are lower than market expectations.