Savills Research projects that 2022 will end the year at least 10% higher than 2021 with a total investment value of $26 billion to $29 billion. This is despite a decline of 25.6% in Q2 compared to the previous quarter.
Accounting for this projection is the healthy performance of the residential investment sales which increased by 5.2% quarter-on-quarter (QoQ) to $.3.32 billion. Similarly, industrial investment sales enjoyed a 18.1% growth QoQ.
Even though the commercial sector’s investment value dropped 65.1% QoQ, the demand for shophouses remained strong with this sub-type of property rising by 8.7% on a QoQ basis.
Alan Cheong, Head of Savills Research, adds, “In the current climate of uncertainty, the pool of investors who are not driven by economic rationale is gaining greater influence on the market colours. They may have reasons such as their imperative to preserve capital instead of aiming to make the financials work in the way an institutional would normally think of.
Interest rate increases may not challenge the market as much as thought as many investors are not rate sensitive.”
Savills Research provides in-depth analysis of property market trends, forecasts from our professional research team and market commentary to help you make the right property decisions. Please find the Sales and Investment Briefing for Q2 2022 here, for your reference.