Preliminary investment sales volume tallied at $6.221 bn in Q2 2019, which represented a 39.0% q-o-q of growth. The office segment was the most robust, driving overall investment sales.
It was a quarter of mixed signals for the office market in Q2 2019. Office indicators continued to look positive although there is a growing overcast of warning signs clouding the outlook of the sector.
It was a subdued quarter, highlighted by negative islandwide net absorption which push vacancy up to 13.2%. Prospects for the business park market looks stable albeit unspectacular.
Q2 2019 saw an easing of leasing activity while tenant turnover was relatively faster particularly for the F&B segment. That said, prime retail rents remained resilient.
Based on the preliminary estimates released by the URA for Q2 2019, the private residential property index registered a positive change of 1.3% after two quarters of decline, bringing the year to date change for 2019 to 0.6%.
The slow leasing market mirrored the slowdown in the manufacturing sector. Most of the industrialists continued to maintain a cautionary stance, and leasing activity was driven by renewals and some relocations.