Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The commercial industry observed $1.4 billion financial investments in 1Q2025, rising 73.9% q-o-q, mostly generated by the procurement of the standing 50% risk in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
The Singapore property capital market has remained “resilient” in 1Q2025 regardless of a drop in financial investment quantity, according to Colliers. Data collated by the firm in an April study report presents that Singapore real estate financial investment quantity dropped 7.3% q-o-q to $6.5 billion last quarter.
The report indicates a shift amongst capitalists in the direction of income-driven strategies, with buyers targeting older, under-managed assets with potential for shifting and rent out optimisation.
Looking ahead, Tan Boon Leong, executive administrator and co-head of investment services at Colliers Singapore, expects Singapore to continue to be “well-positioned as a safe haven for capital”, in spite of developing worldwide financial skepticism amid trade battles and volatile policy changes. For the entire of 2025, Colliers is estimating investment sales to total between $29 billion and $32 billion, offering a 10% to 20% growth compared to last year.
“Selective financial investment opportunities– especially in redevelopment, value-add plays, and alternative properties– have actually increased in appeal because of their architectural tailwinds, beneficial market basics in addition to a method of diversity,” says Catherine He, head of research at Colliers Singapore.
The accommodation industry additionally saw reduced investments last quarter, falling 41.9% to $153 million. On the flipside, investment volume got a boost from the sale of a worker housing portfolio by Blackstone to Bain Capital for $750 million. Another employee dorm, Lantana Lodge, was also sold for $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 performance follows a high base registered in 4Q2024 when a 49% stake in 2 data centres was offered to Keppel DC REIT for around $1.4 billion.
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Omitting the GLS agreements, investment amount expanded 36.4% y-o-y.
Still, a significant rise in housing financial investment sales, steered by Government Land Sale (GLS) tenders, assisted to support volume, says Colliers. GLS offers 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 financial investment quantity would certainly have plunged 35.7% q-o-q, Colliers observes.
That stated, investors will need to adjust to tighter yield spreads, subdued occupier demand and worldwide volatility via imaginative, current property supervision methods, Colliers claims.
