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 stayed “resilient” in 1Q2025 despite a dip in financial investment amount, according to Colliers. Data gathered by the company in an April study record proves that Singapore realty investment volume dropped 7.3% q-o-q to $6.5 billion previous quarter.
The hospitality industry also saw reduced investments last quarter, dropping 41.9% to $153 million. On the flipside, financial investment amount got a boost from the sale of an employee housing portfolio by Blackstone to Bain Capital for $750 million. Another employee dorm, Lantana Lodge, was also sold for $19.1 million during the quarter.
Looking ahead, Tan Boon Leong, executive administrator and co-head of investment services at Colliers Singapore, expects Singapore to remain “well-positioned as a safe house for capital”, despite growing worldwide economic unpredictability amid trade battles and unstable policy shifts. For the entire of 2025, Colliers is approximating investment sales to total between $29 billion and $32 billion, representing a 10% to 20% development compared to last year.
Still, a significant jump in housing financial investment sales, steered by Government Land Sale (GLS) tenders, helped to support quantity, states Colliers. GLS bargains completed $2.8 billion, or about 42.9% of complete investments, last quarter, boosting residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS deals, 1Q2025 investment volume would certainly have plummeted 35.7% q-o-q, Colliers observes.
On a y-o-y basis, investments in 1Q2025 were up 60.1%. Leaving out the GLS agreements, investment volume grew 36.4% y-o-y.
The report indicates a shift among financiers towards income-driven tactics, with buyers targeting older, under-managed assets with prospective for repositioning and rent optimization.
“Selective financial investment chances– especially in redevelopment, value-add plays, and different assets– have actually risen in appeal due to their structural tailwinds, favourable market fundamentals as well as a method of diversity,” claims Catherine He, head of research at Colliers Singapore.
That claimed, investors are going to need to adjust to tighter return spreads, suppressed occupier request and international volatility with imaginative, active property management strategies, Colliers claims.
On the other hand, industrial investments plunged 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% stake in 2 data centers was sold to Keppel DC REIT for about $1.4 billion.
The business industry observed $1.4 billion investments in 1Q2025, rising 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.
