Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The Singapore property capital market has actually continued to be “resistant” in 1Q2025 in spite of a slip in financial investment volume, according to Colliers. Data gathered by the firm in an April study report proves that Singapore real estate investment quantity dropped 7.3% q-o-q to $6.5 billion last quarter.
The report notes a shift among capitalists in the direction of income-driven strategies, with customers targeting older, under-managed assets with prospective for shifting and rent out optimization.
“Careful investment opportunities– particularly in redevelopment, value-add plays, and alternative assets– have increased in appeal due to their structural tailwinds, beneficial market basics along with a means of diversity,” says Catherine He, head of research at Colliers Singapore.
Looking ahead, Tan Boon Leong, executive supervisor and co-head of investment services at Colliers Singapore, anticipates Singapore to continue to be “well-positioned as a safe haven for capital”, in spite of developing global financial doubt amid trade wars and unstable policy shifts. For the entire of 2025, Colliers is approximating financial investment sales to total in between $29 billion and $32 billion, representing a 10% to 20% growth compared to last year.
On the other hand, industrial investments plunged 90.5% q-o-q to $0.2 billion. Colliers notes that the weaker performance follows a high base registered in 4Q2024 when a 49% risk in 2 data centres was marketed to Keppel DC REIT for around $1.4 billion.
The accommodation market also saw reduced investments previous quarter, dropping 41.9% to $153 million. On the flipside, investment amount got a boost from the sale of a worker real estate portfolio by Blackstone to Bain Capital for $750 million. Another employee dorm room, Lantana Lodge, was also sold for $19.1 million throughout the quarter.
The business field saw $1.4 billion investments in 1Q2025, rising 73.9% q-o-q, primarily steered by the purchase of the remaining 50% risk in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
That stated, investors will need to adapt to tighter revenue spreads, subdued occupier demand and worldwide volatility through creative, current resource management approaches, Colliers claims.
On a y-o-y basis, investments in 1Q2025 were up 60.1%. Omitting the GLS deals, investment amount increased 36.4% y-o-y.
Still, a significant jump in non commercial investment sales, steered by Government Land Sale (GLS) tenders, helped to support volume, claims Colliers. GLS offers totalled $2.8 billion, or approximately 42.9% of complete investments, last quarter, increasing residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS deals, 1Q2025 financial investment quantity would certainly have plummeted 35.7% q-o-q, Colliers observes.
