Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The Singapore property capital market has continued to be “resistant” in 1Q2025 in spite of a drop in investment volume, according to Colliers. Data compiled by the firm in an April research study record proves that Singapore real estate financial investment volume plunged 7.3% q-o-q to $6.5 billion last quarter.
The accommodation market also saw reduced 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 employee dorm room, Lantana Lodge, was even sold for $19.1 million throughout the quarter.
“Selective investment opportunities– especially in redevelopment, value-add plays, and alternative possessions– have actually climbed in appeal as a result of their architectural tailwinds, beneficial market basics along with a means of diversity,” says Catherine He, head of research at Colliers Singapore.
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Excluding the GLS deals, investment volume grew 36.4% y-o-y.
That claimed, investors will need to adapt to tighter revenue spreads, restrained occupier request and international volatility with imaginative, current property managing methods, Colliers claims.
Even so, a considerable jump in residential financial investment sales, steered by Government Land Sale (GLS) tenders, helped to support volume, claims Colliers. GLS deals completed $2.8 billion, or about 42.9% of complete investments, last quarter, increasing residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS transactions, 1Q2025 financial investment quantity would certainly have dropped 35.7% q-o-q, Colliers watches.
The report notes a shift amongst capitalists in the direction of income-driven strategies, with customers targeting older, under-managed assets with prospective for repositioning and rent optimization.
Looking ahead, Tan Boon Leong, executive supervisor and co-head of investment services at Colliers Singapore, anticipates Singapore to remain “well-positioned as a safe haven for capital”, despite expanding global financial doubt amid trade battles and volatile policy shifts. For the entire of 2025, Colliers is approximating financial investment sales to total between $29 billion and $32 billion, offering a 10% to 20% growth contrasted to last year.
The commercial industry saw $1.4 billion investments in 1Q2025, surging 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.
On the other hand, industrial investments plunged 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% risk in two data facilities was sold to Keppel DC REIT for around $1.4 billion.
