The 2025 Singapore Real Estate Market Outlook report by CBRE reveals a complex landscape for the country’s property sector, with stabilising inflation and falling interest rates offering some relief.
However, challenges such as geopolitical tensions and a nationalistic economic agenda in the US contribute to a climate of uncertainty.
Moray Armstrong, CBRE Managing Director, noted the mixed signals as Singapore anticipates the URA Master Plan 2025, which will shape long-term land use and development strategies.
Despite these uncertainties, Tricia Song, CBRE Head of Research, emphasised the resilience of Singapore’s real estate market, citing stable demand and limited new supply across various sectors. The report suggests that the market’s stability continues to attract global investors.
In the Core CBD (Grade A) sector, rents are expected to grow by 2% in line with GDP projections, driven by limited supply and demand for quality spaces. However, economic slowdown and high fit-out costs may temper expansionary demand. The logistics sector anticipates a bumper supply in 2025, with nearly 5 million square feet of new space, although pre-commitments are expected to stabilise occupancy and rents.
Retail prime rents are projected to rise by 2% to 3%, supported by tourism recovery, while the residential sector may see a price increase of 3% to 6%. Improved buyer sentiment and lower mortgage rates could lead to more property launches.
CBRE’s survey indicates that investors remain optimistic about Singapore’s real estate, with investment volumes expected to grow by 10% year-on-year in 2025. The industrial and logistics sector remains the top investment choice, with residential assets gaining popularity.
