Investment Sales Volume Surges by 13.3% YoY in Q4 2024

In Q4 2024, investment sales volume in Singapore grew by a robust 13.3% year-on-year (YoY) to $26.6 billion, according to a Colliers report. This growth, despite a 21.8% quarter-on-quarter (QoQ) decline, was driven by several key sectors and factors.

The primary sectors contributing to this growth were:

1. Industrial: The Industrial sector accounted for 28.3% of the total investment sales in 2024, with a significant contribution in Q4. This sector has shown consistent growth throughout the year, indicating a strong demand for industrial properties.
2. Residential: The Residential sector accounted for 20.6% of the total investment sales in 2024. Although the growth in Q4 was not as high as in previous quarters, the sector still contributed significantly to the overall investment sales volume.
3. Retail: The Retail sector accounted for 17.6% of the total investment sales in 2024. Similar to the Residential sector, the Retail sector's contribution to Q4 growth was not as high as in previous quarters but still played a significant role in the overall investment sales volume.

Excluding Government Land Sales (GLS) deals, investment sales in 2024 were boosted by these three sectors, with the Industrial sector being the most significant contributor. The performance of these sectors in Q4 2024, while not as high as in previous quarters, still drove the overall 13.3% YoY growth in investment sales volume.

The increase in investment sales volume in Q4 2024 contributed to the overall investment sales for the year, which was boosted by the Industrial (28.3%), Residential (20.6%), and Retail (17.6%) sectors. Comparing the performance of 2024 to previous years, we can observe a more consistent investment sales performance throughout the year, with revenues evenly spread across the four quarters.

The 21.8% QoQ decline in investment volume in Q4 2024 can be attributed to several factors, including the easing of Government Land Sales (GLS) tenders, seasonal factors, and interest rate concerns. However, the anticipated increase in capital flows to the region in 2025 may lead to an increase in GLS tenders, boosting investment volume. As the holiday season ends and businesses resume normal operations, investment activity is expected to pick up in the following quarters. Additionally, as interest rates continue to decline, borrowing costs may become more affordable, encouraging investors to engage in larger-scale investments and driving up investment volume.

In conclusion, the 13.3% YoY growth in investment sales volume in Q4 2024 was driven by the Industrial, Residential, and Retail sectors, with a more consistent investment sales performance throughout the year compared to previous years. As we look ahead to 2025, investors can expect a positive outlook for investment sales, supported by the anticipated increase in capital flows, the recovery of investment activity, and the gradual decline in interest rates.