Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The report indicates a shift amongst capitalists towards income-driven approaches, with purchasers targeting older, under-managed assets with potential for repositioning and rent out optimisation.
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”, despite developing global business unpredictability in the middle of trade battles and unstable policy switches. For the entire of 2025, Colliers is estimating investment sales to total between $29 billion and $32 billion, presenting a 10% to 20% development compared to last year.
“Careful investment opportunities– particularly in redevelopment, value-add plays, and alternative possessions– have actually climbed in appeal due to their architectural tailwinds, good market basics as well as a means of variation,” claims Catherine He, head of research at Colliers Singapore.
On a y-o-y basis, investments in 1Q2025 were up 60.1%. Omitting the GLS agreements, investment volume expanded 36.4% y-o-y.
The hospitality sector even saw reduced investments previous quarter, dropping 41.9% to $153 million. On the flipside, investment amount got an increase from the sale of a worker housing portfolio by Blackstone to Bain Capital for $750 million. Another worker dorm room, Lantana Lodge, was even cost $19.1 million during the quarter.
That stated, investors will need to adapt to tighter return spreads, suppressed tenant requirement and global volatility via imaginative, current resource managing strategies, Colliers states.
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 facilities was sold to Keppel DC REIT for about $1.4 billion.
The Singapore property capital market has actually stayed “resilient” in 1Q2025 despite a drop in investment amount, according to Colliers. Data collated by the firm in an April research record shows that Singapore property investment quantity dropped 7.3% q-o-q to $6.5 billion last quarter.
Still, a significant leap in housing investment sales, driven by Government Land Sale (GLS) tenders, helped to support quantity, says Colliers. GLS bargains amounted to $2.8 billion, or roughly 42.9% of complete investments, last quarter, increasing residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS transactions, 1Q2025 investment quantity would have plunged 35.7% q-o-q, Colliers observes.
The commercial sector saw $1.4 billion investments in 1Q2025, rising 73.9% q-o-q, primarily generated by the procurement of the remaining 50% stake in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
