The Singapore real estate capital market has remained “resilient” in 1Q2025 despite a dip in investment volume, according to Colliers. Data compiled by the firm in an April research report shows that Singapore real estate investment volume fell 7.3% q-o-q to $6.5 billion last quarter.
Still, a significant jump in residential investment sales, driven by Government Land Sale (GLS) tenders, helped to support volume, says Colliers. GLS deals totalled $2.8 billion, or approximately 42.9% of total 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 plummeted 35.7% q-o-q, Colliers observes.
On a y-o-y basis, investments in 1Q2025 were up 60.1%. Excluding the GLS deals, investment volume grew 36.4% y-o-y.
The commercial sector saw $1.4 billion investments in 1Q2025, surging 73.9% q-o-q, predominantly driven by the acquisition of the remaining 50% stake in Northpoint City (South Wing) for $1.1 billion by Frasers Centrepoint Trust.
On the other hand, industrial investments plummeted 90.5% q-o-q to $0.2 billion. Colliers notes that the weaker performance follows a high base registered in 4Q2024 when a 49% stake in two data centres was sold to Keppel DC REIT for around $1.4 billion.
The hospitality sector also saw lower investments last quarter, falling 41.9% to $153 million. On the flipside, investment volume got a boost from the sale of a worker housing portfolio by Blackstone to Bain Capital for $750 million. Another worker dormitory, Lantana Lodge, was also sold for $19.1 million during the quarter.
Looking ahead, Tan Boon Leong, executive director and co-head of investment services at Colliers Singapore, expects Singapore to remain “well-positioned as a safe haven for capital”, despite growing global economic uncertainty amid trade wars and volatile policy shifts. For the whole of 2025, Colliers is estimating investment sales to total between $29 billion and $32 billion, representing a 10% to 20% growth compared to last year.
That said, investors will need to adapt to tighter yield spreads, subdued occupier demand and global volatility through creative, active asset management strategies, Colliers says.
The report notes a shift among investors towards income-driven strategies, with buyers targeting older, under-managed assets with potential for repositioning and rent optimisation.
“Selective investment opportunities — particularly in redevelopment, value-add plays, and alternative assets — have risen in appeal due to their structural tailwinds, favourable market fundamentals as well as a means of diversification,” says Catherine He, head of research at Colliers Singapore.
