Source : The Business Times, September 17, 2007
SINGAPORE - Investment property sales could hit an all-time high of $50 billion (US$33 billion) this year, fuelled by robust government land sales and housing redevelopment, property consultancy CB Richard Ellis said on Monday.
A total of $12.7 billion worth of real estate investment deals were recorded since the beginning of July to date, swelling the value of transactions in the first nine months this year so far to $37.9 billion, exceeding 2006's full-year figure of $30.6 billion.
Private sector deals made up 84 per cent of property investment to date, which includes the collective sales of housing estates as well as building sales.
CB Richard Ellis said robust government land sales contributed to strong public sector property sales, which made up the remaining 16 per cent of total real estate investment in the year-to-date.
Transactions involving office buildings accounted for 24 per cent of total property investment sales so far, while residential property investment generated the lion's share of 63 per cent.
'The investment sales market is likely to remain active for the rest of the year, with significant contributions likely from public sector sales,' the consultancy said.
The figures include private housing transactions above $5 million but not residential property deals below that.
Office rentals and home prices have surged in Singapore, fuelled by a supply crunch. But some analysts say private home prices, which are at 10-year highs, are headed for a correction as a building boom could flood the republic with new homes by 2009. -- REUTERS
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