Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The report notes a change among capitalists towards income-driven tactics, with buyers targeting older, under-managed assets with possible for repositioning and rent out optimization.
On a y-o-y basis, investments in 1Q2025 were up 60.1%. Excluding the GLS deals, investment amount grew 36.4% y-o-y.
Even so, a significant leap in housing investment sales, driven by Government Land Sale (GLS) tenders, helped to support volume, says Colliers. GLS bargains totalled $2.8 billion, or about 42.9% of overall investments, last quarter, boosting residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS transactions, 1Q2025 financial investment volume would certainly have plummeted 35.7% q-o-q, Colliers watches.
“Selective financial investment opportunities– particularly in redevelopment, value-add plays, and different possessions– have increased in appeal because of their structural tailwinds, favourable market basics in addition to a means of diversification,” states Catherine He, head of research at Colliers Singapore.
Looking ahead, Tan Boon Leong, executive director and co-head of investment services at Colliers Singapore, expects Singapore to remain “well-positioned as a safe haven for capital”, in spite of growing international business skepticism amidst trade battles and unstable policy shifts. For the entire of 2025, Colliers is approximating investment sales to total in between $29 billion and $32 billion, representing a 10% to 20% growth compared to last year.
The accommodation sector even saw reduced investments last quarter, falling 41.9% to $153 million. On the flipside, financial investment volume got a boost from the sale of an employee real estate profile by Blackstone to Bain Capital for $750 million. Another employee dorm room, Lantana Lodge, was even sold for $19.1 million during the quarter.
The Singapore realty capital market has remained “resilient” in 1Q2025 in spite of a slip in financial investment volume, according to Colliers. Data compiled by the company in an April study record proves that Singapore property investment volume plunged 7.3% q-o-q to $6.5 billion last quarter.
On the other hand, industrial investments dropped 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 sold to Keppel DC REIT for about $1.4 billion.
That claimed, investors are going to need to adapt to tighter revenue spreads, suppressed tenant requirement and international volatility with creative, active asset managing strategies, Colliers says.
The business industry viewed $1.4 billion investments in 1Q2025, surging 73.9% q-o-q, mainly driven by the purchase of the remaining 50% stake in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
