Singapore's real estate investment prospects are on the rise in 2020, Colliers International says.

The research consultancy's latest market research report published this week forecasts an uptick across multiple property sectors for the next 12 months.

Colliers Research predicts investment sales could touch SGD31.3 billion in 2020 – representing a 6 per cent year-on-year (YOY) increase.

It comes after total investment sales volumes fell by 12.7 per cent YOY in 2019 to be at SGD29.5 billion, a drop Colliers attributes to the government's cooling measures and the subsequent pull back in the residential property sector.

Colliers International Singapore Head of Research Tricia Song said there was also good news for the country's industrial and hospitality sectors.

Source: Colliers International

“We anticipate a few major REIT acquisitions and mergers to materialise in 2020, potentially boosting industrial, commercial, and hospitality deals," she said.

"Given Singapore’s status as a key gateway city, favourable interest rates, and rejuvenation efforts of the government such as the CBD Incentive Scheme should encourage the redevelopment of eligible older assets in the central business district (CBD) and city fringe areas in the next three to five years.”

According to Colliers, the more benign economic growth forecast for Singapore in 2020 should help to lift investor confidence, with the Singapore economy potentially expanding by 1.4 per cent this year, doubling the 0.7 per cent growth in 2019 (Oxford Economics).

Ms Song said the commercial property sector which led sales in 2019 – accounting for 40 per cent of total transactions - is expected to drive investment sales again this year.

Of the five largest deals transacted in 2019, three were office and retail properties: Duo Tower & Duo Galleria, Chevron House, and 313 at Somerset.

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