Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The accommodation market additionally saw reduced investments previous quarter, dropping 41.9% to $153 million. On the flipside, financial investment volume got an increase from the sale of a worker real estate portfolio by Blackstone to Bain Capital for $750 million. Another worker dorm room, Lantana Lodge, was even cost $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 centres was marketed to Keppel DC REIT for about $1.4 billion.
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Leaving out the GLS deals, investment amount grew 36.4% y-o-y.
The commercial sector saw $1.4 billion financial investments in 1Q2025, surging 73.9% q-o-q, predominantly steered by the procurement of the remaining 50% stake in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
That said, investors will need to adjust to tighter return spreads, restrained occupier demand and global volatility through creative, active asset management strategies, Colliers claims.
The report notes a shift amongst capitalists towards income-driven approaches, with customers targeting older, under-managed assets with prospective for repositioning and rent out optimisation.
Looking ahead, Tan Boon Leong, executive supervisor and co-head of investment services at Colliers Singapore, expects Singapore to stay “well-positioned as a safe house for capital”, regardless of developing worldwide financial uncertainty amidst trade wars and unpredictable policy changes. For the whole of 2025, Colliers is approximating financial investment sales to total in between $29 billion and $32 billion, offering a 10% to 20% growth contrasted to last year.
Even so, a significant rise in housing investment sales, driven by Government Land Sale (GLS) tenders, assisted to support volume, says Colliers. GLS offers amounted to $2.8 billion, or around 42.9% of complete 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 certainly have dropped 35.7% q-o-q, Colliers monitors.
The Singapore realty capital market has stayed “resilient” in 1Q2025 regardless of a dip in financial investment amount, according to Colliers. Data compiled by the firm in an April research report presents that Singapore property financial investment quantity plunged 7.3% q-o-q to $6.5 billion last quarter.
“Careful financial investment chances– especially in redevelopment, value-add plays, and different properties– have risen in appeal due to their structural tailwinds, good market basics in addition to a method of variation,” claims Catherine He, head of research at Colliers Singapore.
