Singapore’s real estate market remains ‘resilient’ despite 7.3% q-o-q drop in investment deals in 1Q2025: Colliers
The hospitality market additionally saw lower investments previous quarter, dropping 41.9% to $153 million. On the flipside, financial investment volume got an increase from the sale of a worker real estate portfolio by Blackstone to Bain Capital for $750 million. Another employee dormitory, Lantana Lodge, was also cost $19.1 million during the quarter.
The report indicates a shift amongst investors towards income-driven strategies, with buyers targeting older, under-managed assets with potential for repositioning and rent out optimisation.
Even so, a substantial jump in housing financial investment sales, driven by Government Land Sale (GLS) tenders, helped to support quantity, claims Colliers. GLS deals amounted to $2.8 billion, or approximately 42.9% of overall 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 have plummeted 35.7% q-o-q, Colliers observes.
The Singapore realty capital market has continued to be “resilient” in 1Q2025 despite a dip in financial investment volume, according to Colliers. Data collated by the firm in an April study report proves that Singapore realty financial investment quantity fell 7.3% q-o-q to $6.5 billion last quarter.
On a y-o-y basis, investments in 1Q2025 were up 60.1%. Omitting the GLS agreements, investment volume increased 36.4% y-o-y.
The business industry saw $1.4 billion investments in 1Q2025, rising 73.9% q-o-q, mostly driven by the procurement of the standing 50% risk in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
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 offered to Keppel DC REIT for about $1.4 billion.
Looking ahead, Tan Boon Leong, executive administrator and co-head of investment services at Colliers Singapore, anticipates Singapore to stay “well-positioned as a safe haven for capital”, regardless of expanding global financial skepticism amid trade wars and volatile policy switches. For the entire of 2025, Colliers is approximating financial investment sales to total in between $29 billion and $32 billion, presenting a 10% to 20% development compared to last year.
“Selective financial investment opportunities– particularly in redevelopment, value-add plays, and different possessions– have increased in appeal as a result of their architectural tailwinds, favourable market basics in addition to a means of diversity,” states Catherine He, head of research at Colliers Singapore.
That stated, investors are going to need to adjust to tighter revenue spreads, restrained occupant request and global volatility with creative, active asset managing approaches, Colliers claims.
