Real Estate Investment Slips in Q1 as Private Deals Slow

Singapore Business Review · Apr 21 16:00

Despite the slowdown, the figure reflects a 60.1% YoY increase, largely due to strong Government Land Sales (GLS).

Real estate investment activity in Singapore declined in the first quarter of 2025, with total investment volume reaching SGD 6.5 billion, down 7.3% QoQ, according to the latest market report from Colliers.

Despite the slowdown, the figure reflects a 60.1% YoY increase, largely due to strong Government Land Sales (GLS).

GLS tenders accounted for $2.8b, or 42.9% of all Q1 investments. Without these public land sales, Colliers estimated that total private-sector investment would have declined 35.7% compared to Q4 2024, though still up 36.4% YoY.

Outside of GLS, investor activity focused on a few key sectors. Retail properties led the way, making up 33.7% of investment sales, followed by residential assets at 29.9% and miscellaneous sectors at 21.0%.

With the market seeing little movement in yield compression, investors are reportedly turning toward income-driven strategies, including the repositioning of older buildings and rental optimization. Value-add and opportunistic investments are also gaining momentum as buyers search for returns in a more selective market.

Looking ahead, Colliers forecasts a more active year, projecting full-year investment sales to rise 10–20% over 2024, bringing total volume to between $29b and $32b.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more