SG Morning Highlights | Singapore Investment Sales Expected to Grow 10% YoY in 2024
Good morning mooers! Here are things you need to know about today's Singapore markets:
●Singapore shares opened higher on Friday; STI up 0.61%
●Singapore Investment Sales Expected to Grow 10% YoY in 2024
●Singapore Real Estate Investment Volume Drops 30.6% YoY in 2023
●Stocks to watch: GuocoLand
●Latest share buy back transactions
-moomoo News SG
Market Snapshot
Singapore shares opened higher on Friday. The $FTSE Singapore Straits Time Index(.STI.SG$ rose 0.61 percent to 3,158.93 as at 9.04 am.
Advancers / Decliners is 108 to 26, with 61.12 million securities worth S$97.48 million changing hands.
Breaking News
Singapore Investment Sales Expected to Grow 10% YoY in 2024
According to Savills, Singapore's investment sales are expected to grow by 10% year-on-year to reach around $22b to $23b in 2024, driven by the Government Land Sale (GLS) market, which is expected to be more active. In the second half of the year, interest rates are also expected to decline. The GLS sites to be awarded in 2024 will increase, with spillover tenders from the 2023 Programme and those in the first half of the 2024 Programme that will close in the second half of the year. Alan Cheong, executive director, Research & Consultancy at Savills, said that the collective sales market for residential is likely to see another year where developers exercise caution and are more inclined to replenish their landbank from the GLS sites. Cheong added that retail assets may improve this year, with yields around 4% high.
Singapore Real Estate Investment Volume Drops 30.6% YoY in 2023
Singapore's real estate investments dropped 30.6% year-on-year to $20.8b in 2023, according to data from Colliers. Excluding Government Land Sales (GLS) tenders, the residential (27.5%), office (18.1%), and industrial (17.0%) sectors supported investment volume this year. GLS tenders accounted for 48.2% or $2.9b of the total volume in 4Q23 and 37.2% or $37.2b of the total for the whole year. In 2024, Colliers expects investment sales to be 5% to 15% higher than 2023, at $22b-$24b. However, deal-making is still expected to be constrained by weaker rental growth, a higher interest rate environment, and tighter liquidity.
Stocks to Watch
$GuocoLand(F17.SG$: A consortium comprising GuocoLand, Intrepid Investments, and TID Residential submitted the sole bid for the Marina Gardens Crescent site in Marina South that was designated for residential and commercial development. Their bid was nearly S$770.5 million or S$984 per square foot per plot ratio (psf ppr), which was almost 30% lower than the S$1,402 psf ppr that Kingsford Group paid for a neighboring plot in Marina Gardens Lane at a state tender last year. Observers noted that the sole bid for the Marina Gardens Crescent plot was lower than the S$1,191 psf ppr fetched for another site in Media Circle, which was offered at the same tender closing on Thursday, despite being much further away from the city and not as close to an MRT station. Property consultants polled by The Business Times had expected the Marina Gardens Crescent site to fetch between zero to five bids, with the highest bid coming in at between S$1,100 psf ppr and S$1,500 psf ppr. The low bid has raised doubts about whether the site will be awarded.
Share Buy Back Transactions
Source: Business Times, SG investors
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