Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The accommodation market also saw lower investments previous quarter, falling 41.9% to $153 million. On the flipside, investment volume got a boost from the sale of a worker real estate portfolio by Blackstone to Bain Capital for $750 million. Another worker dormitory, Lantana Lodge, was also cost $19.1 million throughout the quarter.
Union Square Residences Singapore
On the other hand, industrial investments dropped 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.
“Careful investment chances– particularly in redevelopment, value-add plays, and alternative possessions– have increased in appeal as a result of their architectural tailwinds, favourable market basics along with a method of diversity,” says Catherine He, head of research at Colliers Singapore.
That said, investors are going to need to adapt to tighter revenue spreads, subdued occupier requirement and international volatility via creative, active asset supervision methods, Colliers states.
The business industry viewed $1.4 billion investments in 1Q2025, surging 73.9% q-o-q, primarily generated by the purchase of the standing 50% risk in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Leaving out the GLS deals, investment volume grew 36.4% y-o-y.
Looking ahead, Tan Boon Leong, executive director and co-head of investment services at Colliers Singapore, anticipates Singapore to stay “well-positioned as a safe haven for capital”, regardless of expanding international economic doubt amidst trade battles and unpredictable plan changes. For the whole of 2025, Colliers is estimating investment sales to total between $29 billion and $32 billion, offering a 10% to 20% development compared to last year.
The Singapore realty capital market has actually stayed “durable” in 1Q2025 regardless of a drop in financial investment amount, according to Colliers. Data gathered by the company in an April research study record proves that Singapore real estate financial investment quantity fell 7.3% q-o-q to $6.5 billion last quarter.
Still, a significant jump in non commercial investment sales, steered by Government Land Sale (GLS) tenders, helped to support volume, states Colliers. GLS deals completed $2.8 billion, or approximately 42.9% of total investments, last quarter, boosting residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS transactions, 1Q2025 financial investment quantity would have plunged 35.7% q-o-q, Colliers monitors.
The report notes a shift amongst capitalists towards income-driven approaches, with buyers targeting older, under-managed assets with potential for shifting and rent optimisation.
