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Thread: Foreigners snap up 17.6% of Q2 property investment deals

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    Default Foreigners snap up 17.6% of Q2 property investment deals

    http://www.businesstimes.com.sg/sub/...55140,00.html?

    Published July 8, 2011

    Foreigners snap up 17.6% of Q2 property investment deals


    FOREIGNERS accounted for 17.6 per cent of all property investment deals in Q2 2011, up from 10.5 per cent in the first quarter of the year, according to a new report from DTZ Research.

    Overall, about $8.3 billion of investment sales were transacted in Q2 - a tad higher than the $8 billion worth of deals recorded in Q1 2011.

    The investment figures compiled by DTZ comprise transactions that are more than $5 million each. They also exclude about $1.6 billion of transactions of single residential units and lots that cannot be redeveloped or sub-divided into more than one plot.

    DTZ said that foreign investment in Q2 was largely driven by foreign capital from Asian economies.

    Of these, investors from China and Hong Kong were the most active, as they bought three collective sale sites and two government land sites for a total of $746.4 million.

    Malaysian investors were also involved in two entity-level transactions. GuocoLand sold 20 per cent of its stake in a development at Tanjong Pagar to Malaysia's Employees Provident Fund, while IOI Corporation bought over US-based Elad Group's share in the South Beach development.

    Purchases of government land sales (GLS) sites make up the bulk of investments in Q2 2011, totalling $4.6 billion, which is about 55 per cent of total investment activity. A total of 16 sites were awarded from the GLS programme in Q2 2011, which is twice the number of sites awarded in Q1.

    The average deal size in Q2 2011 was also 17.9 per cent higher than the average deal size in Q1 2011, DTZ said.

    Chua Chor Hoon, head of DTZ South-east Asia Research, said that she expects similar investment activity in the second half of 2011 as rental and capital growth outlook remains positive.

    In late June, separate estimates by CB Richard Ellis (CBRE) and Savills Singapore said that investment sales of property dipped in Q2 compared to Q1 due to slower transactions involving private-sector sellers.

    Both CBRE and Savills define investment sales as transactions of at least $10 million.

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    http://www.todayonline.com/Business/...d-quarter--DTZ

    Investment in properties held firm in second quarter: DTZ

    by Jonathan Peeris

    04:45 AM Jul 08, 2011


    SINGAPORE - Investment sentiment in the Singapore property market remains positive but there are few core assets for sale, according to property consultants DTZ Research.

    It found that investment in properties held firm in the second quarter, with S$8.3 billion of value transacted, higher than the S$8 billion worth of transactions recorded in the first quarter.

    On a year-on-year basis, DTZ said investment sales in the first half of this year amounted to about 59 per cent of total investment sales last year.

    Investment figures compiled by DTZ Research comprise transactions that are more than S$5 million each and exclude S$1.6 billion worth of transactions in single residential units and lots that cannot be redeveloped or subdivided into more than one plot.

    Purchases of Government Land Sales sites made up the bulk of investments in the second quarter, amounting to S$4.6 billion, which is about 55 per cent of the total investment activity in the quarter.

    There were 26 transactions over S$100 million each, slightly more than the 24 deals in the first quarter.

    Foreign investors were more active in the second quarter as they accounted for 17.6 per cent of investment deals, compared to 10.5 per cent in the previous quarter, largely driven by foreign capital from Asian economies such as China, Hong Kong and Malaysia.

    Investors from China and Hong Kong were the most active, as they bought three collective sale sites and two government land sites for a total of S$746.4 million.

    DTZ said it expects similar investment activity in the second half of the year, as rental and capital growth outlook remains positive.

    But while there is ample liquidity, there are few core assets for sale, particularly in the commercial sector, and investors are shifting their focus to the industrial sector or secondary buildings with potential for asset enhancement, it added. Jonathan Peeris

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