DTZ Research sees more property deals worth above $100 million

DTZ Research sees more property deals worth above $100 million
Dec 29, 2009 - PropertyGuru.com.sg

DTZ Research, a global property adviser, said that the last quarter of the financial year saw a rising trend of larger property deals in the Singapore market.

The value of property deals transacted in the last quarter were larger compared to the trend of small deals over the past three quarters of the year.

There were eight transactions, each worth more than $100 million, which made up 77 percent of the $2.5 billion total value transacted in Q4 2009. This is substantially larger than the 48 percent in Q3 and none in Q1 and Q2.

Investments made in Q3 and Q4 composed the 83 percent of the $5.9 billion total investment value in 2009.

The residential sector was the leading performer in 2009, accounting for 50 percent of the overall transaction value. The sector also tallied 56 percent or $1.4 billion of the total investment sales in Q4, with deals like the en bloc sale of Dragon Mansion.

The retail sector was the second top performing sector, contributing 16 percent to the full year transaction value. The sale of Clementi Mall in November for $541.9 million is one of the big deals in this segment.

Looking forward, DTZ Research expects 2010 to be a more active year due to the improving market sentiment.

With more activity coming from the government land sales programme, the residential sector will continuously dominate the property market next year.