Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Leaving out the GLS agreements, investment amount expanded 36.4% y-o-y.
The report indicates a shift among financiers in the direction of income-driven tactics, with customers targeting older, under-managed assets with potential for shifting and rent optimisation.
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 two data centers was offered to Keppel DC REIT for about $1.4 billion.
Looking ahead, Tan Boon Leong, executive administrator 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 expanding global business uncertainty amid trade wars and unpredictable policy changes. For the entire of 2025, Colliers is approximating investment sales to total between $29 billion and $32 billion, representing a 10% to 20% development compared to last year.
The accommodation sector additionally saw reduced investments previous quarter, dropping 41.9% to $153 million. On the flipside, financial investment volume got a boost from the sale of an employee housing profile by Blackstone to Bain Capital for $750 million. Another employee dormitory, Lantana Lodge, was also cost $19.1 million throughout the quarter.
The Singapore real estate capital market has remained “resistant” in 1Q2025 in spite of a drop in investment amount, according to Colliers. Data gathered by the company in an April study record presents that Singapore real estate financial investment quantity fell 7.3% q-o-q to $6.5 billion previous quarter.
“Selective investment chances– particularly in redevelopment, value-add plays, and alternative possessions– have actually increased in appeal as a result of their structural tailwinds, beneficial market fundamentals along with a means of diversification,” states Catherine He, head of research at Colliers Singapore.
Still, a considerable rise in residential investment sales, steered by Government Land Sale (GLS) tenders, assisted to support volume, states Colliers. GLS offers amounted to $2.8 billion, or approximately 42.9% of total investments, last quarter, increasing residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS deals, 1Q2025 investment volume would certainly have dropped 35.7% q-o-q, Colliers monitors.
The commercial field saw $1.4 billion financial investments in 1Q2025, surging 73.9% q-o-q, predominantly driven by the procurement of the remaining 50% risk in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
That claimed, investors will need to adapt to tighter yield spreads, restrained tenant requirement and international volatility through creative, current asset managing strategies, Colliers says.
