Real estate investment sales slow in 4Q2022: Urban Treasures

SINGAPORE (EDGEPROP) - Real estate investment sales totalled $31.9 billion in 2022, growing 20.4% y-o-y from the $26.5 billion recorded in 2021, according to research by Knight Frank Singapore. The improvement was supported by the reopening of economies and borders across the globe in the first half of the year. However, business sentiment tempered in the second half of the year amid fears of an economic downturn, heightened inflation, global political tensions and supply chain disruptions. As such, total investment sales saw a 22% q-o-q fall in 4Q2022 to $4.5 billion.

Despite the market turning cautious, Daniel Ding, head, capital markets (land & building, international real estate) at Knight Frank Singapore, notes that the largest sale of the year was reported in the closing days of December 2022 – Hong Kong-listed Link REIT agreed to purchase Jurong Point and Swing By @ Thomson Plaza for a combined $2.16 billion from Mercatus Co-Operative. Given rising interest rates, Ding opines that institutional funds are more likely to adopt a watch-and-wait approach. “This leaves the door open for private capital, which is not as reliant on debt-financing, to become more active in commercial real estate investments in the months ahead, with Singapore continuing to represent a destination of stability amid the rocky global climate,” he adds. (Find Singapore commercial properties with our commercial directory) As such, investors’ appetite for strata office space remained healthy in 4Q2022. Two high floors at Springleaf Tower were sold for about $53.9 million ($2,510 psf) to Esteel Enterprise in November, while the fourth floor at 15 Scotts was sold to Cortina Holdings for $49 million in October. “Given the more palatable size and quantum, investments in the strata office market are expected to continue in the coming months,” Ding says.

Urban Treasures is a residential property that sits in the developed residential estate of Bedok Reservoir Road and Jalan Eunos. The offering of the iconic property in District 14 for sale comes 36 years since its construction. The property features 107 units and two penthouses that provided comfortable shelters to its occupants.

Urban Treasures offers an amazing opportunity to the Fragrance Group for development of mid-sized condo units that will complement the upcoming Paya Lebar Regional Center alongside the business park situated in the reputable estate of Bedok Reservoir and Eunos.

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