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 regardless of a dip in investment quantity, according to Colliers. Data collated by the firm in an April study record presents that Singapore realty financial investment volume dropped 7.3% q-o-q to $6.5 billion last quarter.
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Excluding the GLS agreements, investment volume increased 36.4% y-o-y.
That stated, investors are going to need to adjust to tighter return spreads, subdued occupier demand and worldwide volatility via creative, active property managing methods, Colliers says.
Looking ahead, Tan Boon Leong, executive administrator and co-head of investment services at Colliers Singapore, anticipates Singapore to remain “well-positioned as a safe haven for capital”, in spite of developing worldwide business skepticism amid trade wars and volatile policy switches. For the whole of 2025, Colliers is approximating investment sales to total in between $29 billion and $32 billion, offering a 10% to 20% development contrasted to last year.
The report notes a change amongst financiers in the direction of income-driven practices, with customers targeting older, under-managed assets with potential for repositioning and rent optimisation.
“Selective investment opportunities– particularly in redevelopment, value-add plays, and different possessions– have actually increased in appeal as a result of their structural tailwinds, beneficial market fundamentals in addition to a means of variation,” claims Catherine He, head of research at Colliers Singapore.
The commercial sector saw $1.4 billion investments in 1Q2025, surging 73.9% q-o-q, mainly steered by the purchase of the standing 50% stake in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
Even so, a considerable leap in housing investment sales, steered by Government Land Sale (GLS) tenders, helped to support volume, claims Colliers. GLS offers completed $2.8 billion, or about 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 investment quantity would have plummeted 35.7% q-o-q, Colliers watches.
The accommodation market even saw reduced investments previous quarter, falling 41.9% to $153 million. On the flipside, investment amount got an increase from the sale of an employee housing profile by Blackstone to Bain Capital for $750 million. Another employee dorm room, Lantana Lodge, was even sold for $19.1 million during the quarter.
On the other hand, industrial investments dropped 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 2 data centers was offered to Keppel DC REIT for around $1.4 billion.
