Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The hospitality sector also saw lower investments previous quarter, dropping 41.9% to $153 million. On the flipside, 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 also sold for $19.1 million during the quarter.
The commercial field observed $1.4 billion financial investments in 1Q2025, surging 73.9% q-o-q, mainly driven by the procurement of the standing 50% risk in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
The report indicates a change among investors towards income-driven practices, with buyers targeting older, under-managed assets with prospective for repositioning and lease optimisation.
The Singapore real estate capital market has actually continued to be “resilient” in 1Q2025 regardless of a dip in investment amount, according to Colliers. Data gathered by the company in an April research record shows that Singapore property investment volume fell 7.3% q-o-q to $6.5 billion previous quarter.
“Careful financial investment chances– particularly in redevelopment, value-add plays, and different properties– have climbed in appeal due to their structural tailwinds, beneficial market basics in addition to a method of variation,” says Catherine He, head of research at Colliers Singapore.
On a y-o-y basis, financial investments in 1Q2025 were up 60.1%. Omitting the GLS agreements, investment amount increased 36.4% y-o-y.
Looking ahead, Tan Boon Leong, executive supervisor and co-head of investment services at Colliers Singapore, anticipates Singapore to continue to be “well-positioned as a safe house for capital”, in spite of developing worldwide business unpredictability amidst trade battles and unpredictable plan switches. For the whole of 2025, Colliers is approximating investment sales to total between $29 billion and $32 billion, representing a 10% to 20% growth contrasted to last year.
Even so, a substantial leap in residential financial investment sales, driven by Government Land Sale (GLS) tenders, assisted to support volume, says Colliers. GLS bargains totalled $2.8 billion, or roughly 42.9% of complete investments, last quarter, boosting residential investments by 68.3% q-o-q to $3.9 billion. Without the GLS transactions, 1Q2025 investment volume would have dropped 35.7% q-o-q, Colliers monitors.
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 centers was offered to Keppel DC REIT for about $1.4 billion.
That claimed, investors are going to need to adapt to tighter revenue spreads, subdued occupant requirement and global volatility with innovative, active resource supervision methods, Colliers says.
