Real estate investment volumes expected to grow at a ‘more moderate’ pace: Colliers

Investors will consider various headwinds going forward, the expert said.

Singapore’s investment volumes in the property market are expected to grow at a “softer” and “more sustainable” pace for the rest of the year, according to Colliers.

In a report, the expert said investors would likely factor in various headwinds from rising interest rates and geopolitical tensions.

In the first quarter of 2022, investments increased by 34.4% to reach $10.6 billion

The slowdown will also be felt in the industrial segment where Colliers expects the cap rate to remain compressed as demand for new economy assets limits supply.

On the other hand, Colliers sees renewed interest in retail and hospitality assets thanks to the economic recovery fueled by the reopening of the Singapore border.

The reopening of borders will also allow for stiff competition for core assets and those offering stable returns through 2022, the expert added.

Along with retail and hospitality assets, Colliers said properties with potential for asset repositioning and enhancement will also be “increasingly attractive” to investors looking for core-plus opportunities. and added value.

Meanwhile, Colliers said capital growth would be bolstered by corporate mergers and acquisitions and cross-border activity, as well as the conclusion of a few large trade deals and land tenders.