Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The business sector observed $1.4 billion financial investments in 1Q2025, surging 73.9% q-o-q, mostly generated by the procurement of the remaining 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%. Excluding the GLS deals, investment amount expanded 36.4% y-o-y.
The Singapore realty capital market has remained “resistant” in 1Q2025 regardless of a dip in investment quantity, according to Colliers. Data collated by the company in an April research record presents that Singapore property financial investment quantity plunged 7.3% q-o-q to $6.5 billion last quarter.
The report indicates a shift amongst capitalists towards income-driven practices, with purchasers targeting older, under-managed assets with possible for shifting and rent optimisation.
The hospitality industry additionally saw lower investments last quarter, dropping 41.9% to $153 million. On the flipside, financial investment amount got an increase from the sale of an employee real estate profile by Blackstone to Bain Capital for $750 million. Another employee dorm room, Lantana Lodge, was also sold for $19.1 million throughout the quarter.
On the other hand, industrial investments plummeted 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% risk in 2 data centers was marketed to Keppel DC REIT for about $1.4 billion.
“Careful investment opportunities– especially in redevelopment, value-add plays, and different possessions– have risen in appeal because of their architectural tailwinds, beneficial market basics along with a method of diversity,” states Catherine He, head of research at Colliers Singapore.
Even so, a considerable leap in housing investment sales, steered by Government Land Sale (GLS) tenders, assisted to support volume, says Colliers. GLS offers totalled $2.8 billion, or around 42.9% of overall investments, last quarter, boosting residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS deals, 1Q2025 investment volume would have dropped 35.7% q-o-q, Colliers monitors.
That said, investors are going to need to adapt to tighter yield spreads, restrained occupier request and worldwide volatility with innovative, active asset managing strategies, Colliers states.
Looking ahead, Tan Boon Leong, executive director and co-head of investment services at Colliers Singapore, anticipates Singapore to remain “well-positioned as a safe house for capital”, regardless of expanding international financial unpredictability amid trade wars and volatile plan switches. 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.
