Investment Sales Drop 20.3% QoQ in Q4 2024: A Closer Look

The Singapore investment sales market experienced a significant decline in the fourth quarter of 2024, with a 20.3% quarter-on-quarter (QoQ) drop to $6.5 billion from $8.2 billion in the previous quarter. This decrease, however, should be considered in the context of the robust 28.7% year-on-year (YoY) increase in investment sales for the whole year 2024. Let's delve into the factors contributing to this QoQ decline and the overall investment sales performance in 2024.

The residential market was the largest contributor to investment sales in Q4 2024, accounting for 36.3% of the total sales. However, this sector experienced a slowdown compared to the previous quarter, which could be attributed to seasonal factors or market-specific conditions. The industrial sector followed with a 35.1% share, while the retail sector accounted for 15.3% of the total sales.

Government Land Sales (GLS) and successful residential collective sales played a significant role in the investment sales performance in Q4 2024. Five GLS sites were awarded, totaling $1.26 billion, and the residential sector saw the successful sale of Thomson View Condominium to a consortium comprising UOL Group, Singapore Land, and CapitaLand Development. This marked the only publicly disclosed successful residential collective sale in 2024.

The total investment deals in 2024 increased by 28.7% YoY to $25.2 billion, from $19.5 billion in 2023. This growth can be attributed to the strong performance of the residential and industrial sectors, driven by GLS and successful collective sales. The residential sector, in particular, benefited from the sale of Thomson View Condominium and the award of GLS sites, which contributed to the overall investment sales performance in Q4 2024.

As we look ahead, investors should remain vigilant and adapt their strategies to the evolving market conditions. While the QoQ decline in investment sales in Q4 2024 may be a cause for concern, the overall YoY increase in investment sales for the whole year 2024 demonstrates the resilience and potential of the Singapore investment sales market. By staying informed and maintaining a balanced perspective, investors can navigate the market's volatility and capitalize on opportunities as they arise.