Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The commercial market saw $1.4 billion investments in 1Q2025, surging 73.9% q-o-q, primarily driven by the purchase of the standing 50% risk in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
“Selective investment opportunities– particularly in redevelopment, value-add plays, and alternative properties– have climbed in appeal due to their structural tailwinds, good market fundamentals in addition to a method of diversity,” states Catherine He, head of research at Colliers Singapore.
The Singapore property capital market has actually stayed “resistant” in 1Q2025 regardless of a slip in investment volume, according to Colliers. Data compiled by the company in an April research study record shows that Singapore property investment volume dropped 7.3% q-o-q to $6.5 billion last quarter.
That said, investors are going to need to adjust to tighter return spreads, controlled occupier demand and international volatility through innovative, current resource managing approaches, Colliers states.
Looking ahead, Tan Boon Leong, executive director and co-head of investment services at Colliers Singapore, expects Singapore to remain “well-positioned as a safe house for capital”, in spite of growing worldwide financial doubt amidst trade battles and unpredictable policy changes. For the entire of 2025, Colliers is approximating financial investment sales to total in between $29 billion and $32 billion, presenting a 10% to 20% development contrasted to last year.
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Omitting the GLS deals, investment volume grew 36.4% y-o-y.
Even so, a considerable rise in housing financial investment sales, steered by Government Land Sale (GLS) tenders, helped to support volume, states Colliers. GLS offers completed $2.8 billion, or around 42.9% of total investments, last quarter, boosting residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS deals, 1Q2025 investment quantity would certainly have plunged 35.7% q-o-q, Colliers watches.
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% risk in 2 data centres was offered to Keppel DC REIT for around $1.4 billion.
The accommodation sector also saw reduced investments previous quarter, falling 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 employee dormitory, Lantana Lodge, was even cost $19.1 million during the quarter.
The report notes a change amongst financiers towards income-driven tactics, with purchasers targeting older, under-managed assets with prospective for shifting and rent out optimisation.
