Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The report indicates a change amongst financiers in the direction of income-driven strategies, with buyers targeting older, under-managed assets with prospective for shifting and rent optimisation.
On the other hand, industrial investments plummeted 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% stake in 2 data centres was offered to Keppel DC REIT for about $1.4 billion.
The commercial sector observed $1.4 billion financial investments in 1Q2025, surging 73.9% q-o-q, mainly steered by the acquisition of the remaining 50% stake in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
On a y-o-y basis, investments in 1Q2025 were up 60.1%. Leaving out the GLS agreements, investment volume increased 36.4% y-o-y.
The Singapore realty capital market has actually continued to be “resilient” in 1Q2025 in spite of a drop in financial investment amount, according to Colliers. Data gathered by the company in an April research record shows that Singapore real estate investment volume fell 7.3% q-o-q to $6.5 billion last quarter.
The hospitality industry even saw reduced investments last quarter, dropping 41.9% to $153 million. On the flipside, financial investment amount got an increase from the sale of a worker housing profile by Blackstone to Bain Capital for $750 million. Another worker dorm, Lantana Lodge, was also sold for $19.1 million during the quarter.
Even so, a substantial jump in residential financial investment sales, driven by Government Land Sale (GLS) tenders, assisted to support volume, states Colliers. GLS bargains amounted to $2.8 billion, or approximately 42.9% of overall 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 plummeted 35.7% q-o-q, Colliers monitors.
Looking ahead, Tan Boon Leong, executive administrator and co-head of investment services at Colliers Singapore, expects Singapore to continue to be “well-positioned as a safe house for capital”, regardless of growing global business doubt amid trade battles and unstable policy changes. For the whole of 2025, Colliers is estimating investment sales to total between $29 billion and $32 billion, representing a 10% to 20% development compared to last year.
“Selective investment chances– especially in redevelopment, value-add plays, and different possessions– have increased in appeal because of their architectural tailwinds, good market basics as well as a means of diversification,” says Catherine He, head of research at Colliers Singapore.
That claimed, investors will need to adapt to tighter revenue spreads, subdued occupier requirement and international volatility through creative, current resource management strategies, Colliers says.
