SINGAPORE: Property consultant Jones Lang LaSalle says Singapore is seeing one of the world’s strongest growth in real estate investment transactions.
In its Global Market Perspective report, it says shortages of prime assets for sale are constraining investment volumes.
This has led to Singapore, Australia, Sweden and China experiencing the highest property investment growth as those countries have robust economic conditions.
In the third quarter, Singapore saw direct commercial real estate investment rise by 358 per cent from the April-June period to US$3.1 billion.
The markets in China, Sweden and Australia grew between 37 per cent and 66 per cent quarter-on-quarter.
Jones Lang LaSalle also notes in its report that investor sentiment is positive and appears to be getting stronger as market fundamentals steadily improve.
It adds that substantial increases in prime capital values are being recorded, most notably in many of the world’s premier office markets like London, Shanghai and Hong Kong.
In addition, Jones Lang LaSalle says commercial mortgage-backed securities (CMBS) are staging a rally.
It says the US securitised markets have year-to-date witnessed CMBS issuances totalling US$4.7 billion compared with US$3.4 billion for the whole of 2009.