Low interest rates drive a 166.5% year-on-year surge in China's bulk real estate transactions in the first quarter | Lianhe Zaobao

Driven by low interest rates, Singapore's bulk real estate transaction volume in the first quarter of this year surged 166.5% year-on-year, reaching SGD 15.4 billion, setting a record high. However, analysts pointed out that the growth rate of transactions may be affected by the Middle East military conflict, and some investors are expected to adopt a wait-and-see attitude until the situation clarifies. The latest research report from real estate consultancy Knight Frank shows that the bulk real estate transaction volume increased by 10% quarter-on-quarter and 166.5% year-on-year in the first quarter. The largest transaction was Hongkong Land listing Asia Square Tower 1 in a core private real estate fund in Singapore. Another major transaction involved a consortium formed by UOL, CapitaLand Development, and CapitaLand Integrated Commercial Trust, which secured a government land sale site located at 10 Pasir Ris Drive 4/Pasir Ris Central for SGD 1.5 billion. The report stated that the significant increase in transaction volume in the first quarter was mainly due to the low interest rate environment. This reduced borrowing costs and narrowed price gaps, allowing previously unachieved transactions to be realized. Investors were also actively seeking investment opportunities, driving transaction activity. Commercial properties were the most favored by investors, with a transaction investment amount of SGD 6.3 billion in the first quarter, although this represented a 17.2% decrease compared to the fourth quarter. The most notable transaction was the acquisition of the office building at 78 Shenton Way by GuocoLand's subsidiary, with market predictions estimating the transaction price to be between SGD 600 million and SGD 630 million. The total amount for residential real estate was SGD 4.4 billion, down 1.8% quarter-on-quarter; while industrial real estate transaction volume reached SGD 3.1 billion, up 72.2% quarter-on-quarter. Our country's investors' overseas bulk real estate transaction volume increased by 7.8% quarter-on-quarter Extended Reading Zervois Hill rare high-quality bungalows for sale, estimated price SGD 8 million CapitaLand Investment Trust plans to divest retail units and parking lots at Stars Of Kovan As for overseas investments, Knight Frank cited statistics from MSCI Real Assets, stating that the total amount of large-scale real estate transactions conducted by Singaporean investors abroad increased by 7.8% quarter-on-quarter, reaching SGD 10.3 billion. "Cross-border investment activities continued in the first quarter, mainly as investors sought portfolio diversification and long-term income resilience, entering more stable markets. However, with the escalation of conflicts in the Middle East increasing global tensions, the growth rate of investment activities may slow down." The report also mentioned that the upcoming large-scale real estate transactions are expected to be driven by investors choosing to invest in Singapore based on individual asset classes and yield expectations, rather than withdrawing funds from regions affected by the Middle East conflict. Cushman & Wakefield's Head of Research for Singapore and Southeast Asia, Huang Xianyang, was more optimistic. In an interview with Lianhe Zaobao, he said, "The strong appeal of Singapore as a safe haven, along with the currently still relatively low interest rate environment, may mitigate these impacts and continue to support investment activities." He estimated that the transaction volume for the first quarter would be between SGD 19 billion and SGD 20 billion, higher than Knight Frank's data. He believes that the focus of investors' investments will still be on high-quality office buildings and retail malls, as both types of real estate are facing supply shortages. Additionally, with construction costs on the rise and the number of new projects likely limited, real estate that is well-located and can provide stable income will be more attractive to investors. Knight Frank predicts that the total large-scale real estate investment for the year will reach approximately SGD 30 billion