Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The business market saw $1.4 billion investments in 1Q2025, rising 73.9% q-o-q, mostly steered by the purchase of the remaining 50% stake in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
Looking ahead, Tan Boon Leong, executive supervisor and co-head of investment services at Colliers Singapore, expects Singapore to continue to be “well-positioned as a safe house for capital”, despite growing international business uncertainty amidst trade wars and volatile plan shifts. For the entire of 2025, Colliers is estimating financial investment sales to total between $29 billion and $32 billion, offering a 10% to 20% development compared to last year.
“Careful investment opportunities– particularly in redevelopment, value-add plays, and alternative possessions– have actually increased in appeal due to their structural tailwinds, favourable market fundamentals as well as a method of diversity,” claims Catherine He, head of research at Colliers Singapore.
The hospitality market even saw lower investments last quarter, dropping 41.9% to $153 million. On the flipside, investment amount got a boost from the sale of an employee real estate profile by Blackstone to Bain Capital for $750 million. Another worker dorm, Lantana Lodge, was even cost $19.1 million throughout the quarter.
On the other hand, industrial investments dropped 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 sold to Keppel DC REIT for around $1.4 billion.
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Leaving out the GLS agreements, investment amount grew 36.4% y-o-y.
The Singapore real estate capital market has stayed “resistant” in 1Q2025 in spite of a drop in investment amount, according to Colliers. Data gathered by the firm in an April study record proves that Singapore property financial investment volume plunged 7.3% q-o-q to $6.5 billion previous quarter.
Still, a substantial jump in residential financial investment sales, steered by Government Land Sale (GLS) tenders, helped to support volume, says Colliers. GLS offers 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 volume would certainly have plunged 35.7% q-o-q, Colliers observes.
The report notes a change amongst financiers in the direction of income-driven practices, with customers targeting older, under-managed assets with prospective for shifting and rent out optimization.
That said, investors will need to adapt to tighter yield spreads, controlled occupier request and worldwide volatility with innovative, current asset supervision strategies, Colliers states.
