Local Properties

Blackstone Indcor was purchased by GLP and GIC for US$8 billion, a property which spans 117 million square feet in the United States. GLP also made another large purchase of US$4.5 billion in order to acquire a portfolio of industrial properties by the Industrial Income Trust.

A portfolio of 26 industrial properties, totalling over $1 billion was purchased by Ascendas Real Estate Investment Trust in Australia from the GIC and Frasers Property Australia.

Singapore Investors for Local Properties

Singapore investors have continued to favour retail and office properties with a combined total of around $9 billion purchased in 2015.

Despite the expansion of overseas investment by Singapore investors, the flow of foreign investment into Singapore has remained stable at a rate of $3.5 billion which is similar to most recent years, with the exception of 2014 where this flow of foreign investment fell to just $1.22 billion.

China has continued to remain the leader of foreign investment in Singapore. Chinese investors have to date spent over US$1.03 billion on Singapore properties.

The biggest purchase of Singapore property in 2015 however, was surprisingly not by an investor of Chinese origin, with the property in “Paya Lebar” purchased by the “Abu Dhabi Soverign welfare fund, the Abu Dhabi Investment Authority” and the Australian developer “Lend Lease.”

Foreign Investors for Local Properties

Other rather active foreign investors in Singapore real estate were the Hao Juan Investment Group and the China Metallurgical (CMM) respectively.

Since 2011, the preferred route for foreign investors interested in purchasing Singapore real estate has continued to be development sites, which has accounted for 58% of investment in Singapore properties at a cost of US$8 billion.

The preference for development sites stems from the ease of completing the transaction and the transparency of the tender process. These sites also tend to reap higher profits and are more readily available in comparison to other properties which market watchers say are also less likely to go on the market because they are held by long term investors.

Private Condos in Singapore

Smaller developers such as family officers and private wealth,have increasing interest in investing in Singapore real estate and are more frequently making purchases to suit their budget of less than US$ 100 million.

The two trends expected in 2016 will be a continual interest by smallerAsian investors in real estate investment overseas, and a willingness by investors to consider purchasing property further away than their usual target area, for example on a city fringe instead of a downtown CBD or in the countryside.

Continental Europe is expected to have a better value in the long term for price appreciation than the familiar London market so investors are advised to scope out locations in nations such as Germany, Ital, Portugal, Spain and France.

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