Which property segments will gain the most interest from investors in 2022

The relaxation of COVID measures is expected to attract a higher inflow of investors this year.

Following the relaxation of COVID-19 measures in Singapore, analysts are expecting a higher inflow of investors in the property market.

In particular, Knight Frank said the easing will benefit the hospitality and retail segments.

“The revisions in the size of gatherings from five to ten could provide investors and developers alike to consider retail developments where footfall would increase with more consumers returning to malls,” Knight Frank said on retail.

In the hospitality segment, the analyst believes that investors and hoteliers are already regaining confidence in the new era of endemic living, as shown during the sale of Hotel Clover in March.

Improvement in these two segments is also expected to provide further support and boost the investment market in 2022.

Overall, however, the investment market for 2022 will be led by merger and acquisition deals by REITs and sales from land-starved developers who are “keenly vying for available GLS (Government Land Sales) plots or prime collective sales sites,” according to Knight Frank.

The award of GLS sites, coupled with significant commercial deals, was the primary reason why investment sales grew to $9.4b in the first quarter (Q1) of 2022 from $4.7b in Q1 2021.