Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The commercial field viewed $1.4 billion investments in 1Q2025, rising 73.9% q-o-q, primarily driven by the procurement of the standing 50% risk in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
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 two data centers was marketed to Keppel DC REIT for around $1.4 billion.
Still, a significant jump in residential financial investment sales, driven by Government Land Sale (GLS) tenders, assisted to support quantity, says Colliers. GLS offers amounted to $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 transactions, 1Q2025 financial investment quantity would have dropped 35.7% q-o-q, Colliers monitors.
Looking ahead, Tan Boon Leong, executive administrator and co-head of investment services at Colliers Singapore, anticipates Singapore to stay “well-positioned as a safe house for capital”, in spite of growing global economic skepticism amid trade battles and unstable plan switches. For the entire of 2025, Colliers is approximating financial investment sales to total between $29 billion and $32 billion, presenting a 10% to 20% development compared to last year.
“Selective financial investment opportunities– particularly in redevelopment, value-add plays, and different assets– have risen in appeal due to their structural tailwinds, favourable market basics along with a means of diversification,” says Catherine He, head of research at Colliers Singapore.
On a y-o-y basis, investments in 1Q2025 were up 60.1%. Leaving out the GLS deals, investment amount expanded 36.4% y-o-y.
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The report indicates a change amongst investors in the direction of income-driven tactics, with buyers targeting older, under-managed assets with prospective for repositioning and rent out optimisation.
The accommodation market additionally saw reduced investments last quarter, dropping 41.9% to $153 million. On the flipside, investment volume got a boost from the sale of an employee real estate profile by Blackstone to Bain Capital for $750 million. Another employee dormitory, Lantana Lodge, was even cost $19.1 million throughout the quarter.
That said, investors are going to need to adjust to tighter revenue spreads, suppressed occupant requirement and global volatility via creative, current property managing approaches, Colliers says.
The Singapore realty capital market has remained “resistant” in 1Q2025 in spite of a drop in investment amount, according to Colliers. Data collated by the firm in an April research report presents that Singapore property investment volume dropped 7.3% q-o-q to $6.5 billion last quarter.
