Singapore’s capital market property deals have seen a significant increase in value, reaching $25.8 billion between January and November of this year, according to Wong Xian Yang, head of research for Singapore & Southeast Asia at Cushman & Wakefield (C&W). This marks a 40.2% year-on-year increase from the $18.4 billion recorded in 2023. C&W defines capital market transactions as deals with values exceeding $10 million.
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According to Wong, almost 60% of these deals were transacted in the second half of 2024, driven by growing investor appetite and increased confidence in interest rate cuts by the US Treasury. Three deals exceeding $1 billion were made in 2024, all of which were transacted in the second half of the year.
The most expensive deal 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). The remaining 50% stake is held by Hong Kong-listed property developer Sun Hung Kai Properties.
ION Orchard is an eight-storey retail mall located in the heart of the shopping belt and directly linked to the Orchard MRT Station. It has a net lettable area of about 623,000 sq ft and is home to more than 300 international and local brands. Sitting on top of the mall is the 54-storey, 175-unit luxury condominium tower, The Orchard Residences.
The highest-valued office deal of the year was also recorded in 2024, with Mapletree Anson selling for $775 million in the second quarter of the year. This surge in investment value was mainly driven by a growing interest in the industrial sector, with investments reaching $5.6 billion in just the first 11 months of the year, representing a 174% increase from the previous year. The biggest deal in this sector was the $1.6 billion divestment of a portfolio of seven industrial properties by Soilbuild Business Space REIT to a joint venture owned by private equity firm Warburg Pincus and Australia-listed Lendlease Group in August.
Despite the unsuccessful sale of some Government Land Sales (GLS) sites this year, residential development sites sold through GLS tenders remained the bulk of total investment sales for the year at 42%. Four GLS sites on the Confirmed List for 2024 were not awarded, including a 6.5ha master developer white site in the Jurong Lake District (JLD) and a 1.73ha white site at Marina Gardens Crescent.
Investment volumes are expected to continue increasing in 2025 as investors prepare for a rebound in capital values driven by lower interest rates. Institutional investors that have been sitting on the sidelines may also return to the market, as long as interest rate cuts are faster and higher than market expectations. Overall, CBRE Research predicts a 10% growth in investment volumes from 2024’s levels in 2025, barring any macroeconomic shocks.