Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The business industry saw $1.4 billion financial investments in 1Q2025, surging 73.9% q-o-q, predominantly steered by the procurement of the remaining 50% stake in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
Even so, a significant jump in housing investment sales, steered by Government Land Sale (GLS) tenders, helped to support volume, claims Colliers. GLS bargains 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 investment quantity would certainly have plunged 35.7% q-o-q, Colliers observes.
The report indicates a shift amongst investors in the direction of income-driven approaches, with purchasers targeting older, under-managed assets with potential for shifting and rent out optimisation.
On the other hand, industrial investments plummeted 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 two data facilities was offered to Keppel DC REIT for around $1.4 billion.
“Selective investment chances– especially in redevelopment, value-add plays, and different properties– have actually increased in appeal because of their structural tailwinds, good market fundamentals as well as a means of diversification,” claims Catherine He, head of research at Colliers Singapore.
The accommodation sector additionally saw reduced investments previous quarter, dropping 41.9% to $153 million. On the flipside, investment amount got a boost from the sale of a worker housing profile by Blackstone to Bain Capital for $750 million. Another worker dorm, Lantana Lodge, was even sold for $19.1 million throughout the quarter.
Bloomsbury Residences Singapore
The Singapore property capital market has stayed “resistant” in 1Q2025 regardless of a drop in financial investment quantity, according to Colliers. Data gathered by the firm in an April study report shows that Singapore real estate financial investment quantity plunged 7.3% q-o-q to $6.5 billion last quarter.
Looking ahead, Tan Boon Leong, executive administrator and co-head of investment services at Colliers Singapore, expects Singapore to remain “well-positioned as a safe house for capital”, despite growing international business doubt amid trade battles and unpredictable policy shifts. For the whole of 2025, Colliers is estimating financial investment sales to total between $29 billion and $32 billion, offering a 10% to 20% development contrasted to last year.
That said, investors are going to need to adjust to tighter yield spreads, restrained occupier demand and global volatility with imaginative, current asset management approaches, Colliers states.
On a y-o-y basis, investments in 1Q2025 were up 60.1%. Omitting the GLS deals, investment volume expanded 36.4% y-o-y.
