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 stayed “resistant” in 1Q2025 despite a slip in investment volume, according to Colliers. Data compiled by the company in an April research report proves that Singapore property investment quantity fell 7.3% q-o-q to $6.5 billion previous quarter.
That claimed, investors are going to need to adjust to tighter revenue spreads, subdued occupier request and worldwide volatility through innovative, current property supervision approaches, Colliers says.
The commercial industry saw $1.4 billion investments in 1Q2025, surging 73.9% q-o-q, mostly steered by the purchase of the standing 50% stake in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
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 house for capital”, despite growing global business uncertainty amidst trade wars and unpredictable plan switches. For the entire of 2025, Colliers is estimating investment sales to total between $29 billion and $32 billion, representing a 10% to 20% growth compared to last year.
On the other hand, industrial investments plummeted 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 centres was marketed to Keppel DC REIT for about $1.4 billion.
“Selective financial investment opportunities– particularly in redevelopment, value-add plays, and different properties– have climbed in appeal because of their architectural tailwinds, good market fundamentals as well as a method of variation,” claims Catherine He, head of research at Colliers Singapore.
The report notes a shift among financiers towards income-driven strategies, with purchasers targeting older, under-managed assets with potential for repositioning and rent out optimisation.
Still, a substantial rise in housing financial investment sales, steered by Government Land Sale (GLS) tenders, helped to support quantity, says Colliers. GLS bargains completed $2.8 billion, or roughly 42.9% of overall investments, last quarter, increasing residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS transactions, 1Q2025 investment quantity would have plummeted 35.7% q-o-q, Colliers watches.
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Excluding the GLS deals, investment volume expanded 36.4% y-o-y.
The hospitality sector also saw reduced investments previous 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 room, Lantana Lodge, was even sold for $19.1 million throughout the quarter.
