Singapore’s real estate investment volume reached $4.8b (S$6.5b) in the first quarter of 2025, marking a 7.3% decline quarter-on-quarter (QoQ) but a significant 60.1% increase year-on-year (YoY), according to Colliers’ latest report. The surge was largely driven by Government Land Sales (GLS), which contributed $2.1b (S$2.8b), or 42.9% of the total investments.
Despite the quarterly dip, the market showed resilience, with private transactions focusing on strategic goals like asset consolidation and enhancement. Excluding GLS, the Retail, Residential, and Other sectors were key contributors, accounting for 33.7%, 29.9%, and 21.0% of investments, respectively.
Colliers anticipates a 10–20% increase in investment volumes for 2025, projecting a total of $21.4b to $23.6b (S$29 to $32b). The firm suggests that investors may pivot towards income-driven strategies, such as repositioning older assets, due to the absence of significant yield compression.
Tan Boon Leong, Executive Director at Colliers, noted, “The macroeconomic climate could weigh on investment and occupier sentiment in the near term. However, despite growing global economic uncertainty, Singapore remains well-positioned as a safe haven for capital.”
Catherine He, Head of Research at Colliers, added, “Selective investment opportunities, particularly in redevelopment and value-add plays, have risen in appeal due to their structural tailwinds and favourable market fundamentals.”
As global uncertainties persist, Singapore’s real estate market continues to attract investors seeking stability and strategic growth opportunities.
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