Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The report notes a change amongst investors towards income-driven approaches, with customers targeting older, under-managed assets with potential for repositioning and rent optimisation.
The Singapore property capital market has actually remained “resilient” in 1Q2025 despite a drop in investment volume, according to Colliers. Data collated by the company in an April study record proves that Singapore real estate investment volume dropped 7.3% q-o-q to $6.5 billion previous quarter.
Even so, a significant jump in non commercial investment sales, steered by Government Land Sale (GLS) tenders, helped to support quantity, states Colliers. GLS bargains completed $2.8 billion, or roughly 42.9% of total investments, last quarter, increasing residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS transactions, 1Q2025 investment volume would have plunged 35.7% q-o-q, Colliers observes.
The commercial sector saw $1.4 billion financial investments in 1Q2025, rising 73.9% q-o-q, primarily steered by the procurement of the remaining 50% risk in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
That claimed, investors are going to need to adjust to tighter yield spreads, controlled tenant demand and global volatility via imaginative, active asset managing strategies, Colliers states.
On the other hand, industrial investments plummeted 90.5% q-o-q to $0.2 billion. Colliers notes that the weaker efficiency follows a high base registered in 4Q2024 when a 49% stake in two data centres was marketed to Keppel DC REIT for about $1.4 billion.
The hospitality sector additionally saw lower investments last quarter, dropping 41.9% to $153 million. On the flipside, financial investment volume got an increase from the sale of a worker housing portfolio by Blackstone to Bain Capital for $750 million. Another employee dorm room, Lantana Lodge, was also cost $19.1 million throughout the quarter.
“Careful financial investment opportunities– especially in redevelopment, value-add plays, and alternative assets– have actually increased in appeal due to their architectural tailwinds, beneficial market basics as well as a means of variation,” states Catherine He, head of research at Colliers Singapore.
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Omitting the GLS agreements, investment volume increased 36.4% y-o-y.
Looking ahead, Tan Boon Leong, executive director and co-head of investment services at Colliers Singapore, anticipates Singapore to remain “well-positioned as a safe house for capital”, in spite of expanding worldwide financial doubt in the middle of trade wars and volatile policy switches. For the entire of 2025, Colliers is estimating financial investment sales to total in between $29 billion and $32 billion, representing a 10% to 20% development contrasted to last year.
