Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The Singapore realty capital market has actually remained “durable” in 1Q2025 despite a dip in financial investment volume, according to Colliers. Data gathered by the company in an April research report proves that Singapore property financial investment quantity dropped 7.3% q-o-q to $6.5 billion last quarter.
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Excluding the GLS agreements, investment amount increased 36.4% y-o-y.
The report notes a change amongst financiers in the direction of income-driven tactics, with purchasers targeting older, under-managed assets with potential for shifting and lease optimisation.
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”, despite expanding international business uncertainty in the middle of trade battles and volatile policy changes. For the entire of 2025, Colliers is approximating financial investment sales to total between $29 billion and $32 billion, representing a 10% to 20% development contrasted to last year.
Even so, a significant rise in housing investment sales, driven by Government Land Sale (GLS) tenders, assisted to support volume, claims Colliers. GLS offers amounted to $2.8 billion, or roughly 42.9% of total investments, last quarter, increasing residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS deals, 1Q2025 financial investment volume would have plummeted 35.7% q-o-q, Colliers observes.
The business sector saw $1.4 billion financial investments in 1Q2025, rising 73.9% q-o-q, mostly steered by the acquisition of the remaining 50% risk in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
The hospitality sector additionally saw lower investments last quarter, falling 41.9% to $153 million. On the flipside, investment amount got a boost from the sale of an employee housing portfolio by Blackstone to Bain Capital for $750 million. Another worker dorm room, Lantana Lodge, was also cost $19.1 million during the quarter.
That stated, investors will need to adapt to tighter return spreads, controlled tenant requirement and international volatility through creative, current resource managing methods, Colliers claims.
“Selective financial investment chances– particularly in redevelopment, value-add plays, and alternative possessions– have actually increased in appeal as a result of their architectural tailwinds, favourable market basics in addition to a method of diversification,” says Catherine He, head of research at Colliers 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 centers was offered to Keppel DC REIT for about $1.4 billion.
