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 continued to be “durable” in 1Q2025 regardless of a drop in investment quantity, according to Colliers. Data collated by the company in an April research study record presents that Singapore realty financial investment quantity plunged 7.3% q-o-q to $6.5 billion last quarter.
The commercial market saw $1.4 billion financial investments in 1Q2025, surging 73.9% q-o-q, mainly generated by the acquisition of the remaining 50% stake in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
That claimed, investors will need to adapt to tighter yield spreads, subdued occupant requirement and worldwide volatility with innovative, active resource supervision approaches, Colliers states.
Looking ahead, Tan Boon Leong, executive supervisor and co-head of investment services at Colliers Singapore, expects Singapore to continue to be “well-positioned as a safe haven for capital”, in spite of growing worldwide financial doubt amid trade wars and volatile plan changes. For the entire of 2025, Colliers is estimating financial investment sales to total between $29 billion and $32 billion, offering a 10% to 20% development compared to last year.
On a y-o-y basis, investments in 1Q2025 were up 60.1%. Omitting the GLS deals, investment volume increased 36.4% y-o-y.
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 centers was offered to Keppel DC REIT for around $1.4 billion.
The accommodation market additionally saw reduced investments last quarter, falling 41.9% to $153 million. On the flipside, investment amount got an increase from the sale of a worker real estate portfolio by Blackstone to Bain Capital for $750 million. Another employee dorm, Lantana Lodge, was also cost $19.1 million during the quarter.
The report indicates a change among investors in the direction of income-driven practices, with customers targeting older, under-managed assets with prospective for shifting and lease optimisation.
Even so, a substantial rise in housing investment sales, steered by Government Land Sale (GLS) tenders, helped to support quantity, claims Colliers. GLS bargains totalled $2.8 billion, or around 42.9% of complete investments, last quarter, boosting residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS deals, 1Q2025 financial investment quantity would certainly have plunged 35.7% q-o-q, Colliers monitors.
“Selective investment opportunities– especially in redevelopment, value-add plays, and alternative assets– have actually increased in appeal as a result of their structural tailwinds, good market basics as well as a means of diversification,” states Catherine He, head of research at Colliers Singapore.
