Singapore direct commercial real estate investment declined by 66% to nearly US$700 million in first quarter of 2016, property consultancy JLL reported.
The sharp drop of commercial segment is attributed to the absence of big-ticket transaction during the quarter as growing number of vacancies and the record count of new completions weaken the sentiment of investors.
In particular, the prime office sector is predicted to experience drop of rental about 10 to 20 percent this 2016, same with capital values.
Singapore office market is also hoping to favour tenants this year 2016 and 2017, before turning to a neutral stance in year 2018, according to JLL.
Meanwhile, Asia Pacific (APAC)'s direct commercial property investment dropped by 5% to US$24 billion in yearly basis for Q1 2016, however this interprets to a higher declined of 34% to US$36 billion in fourth quarter of 2015.
Total investment volume by value worldwide is forecasted to fall by 5% in 2016, with Asia Pacific figure likely dropping within 5 to 10%.