Singapore’s real estate investment market experienced a slowdown in the first quarter of 2025, with total investment sales plummeting to $4.25b (S$5.80b). This marks a significant drop from the previous year, as reported by Savills Singapore. The residential sector, however, remained a strong performer, contributing 64.9% to the total investment value, driven by five private residential land parcels awarded under the Government Land Sales (GLS) Programme.
The commercial sector also showed resilience, closing Q1 2025 with $1.09b (S$1.49b) in investment sales, a 54.2% increase quarter-on-quarter (QoQ). This growth was largely attributed to the billion-dollar deal involving Northpoint City South Wing. Meanwhile, the hospitality sector recorded $243.8m (S$332.8m) in investment sales from three deals, marking a 26.5% increase compared to the previous quarter.
However, the industrial sector faced a sharp decline, with investment sales dropping to $154.5m (S$211.2m), reflecting a 90.3% decrease QoQ and a 47.3% year-on-year (YoY) decline.
Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted, “The stance adopted by different countries as they play the tariff game with the US is creating uncertainties for our real estate investment sales market.”
Looking ahead, the potential removal of tariffs on US imports could impact the market’s medium to long-term outlook. Savills has adjusted its forecast for 2025’s investment sales value from $16.87b (S$23b) to $14.68b (S$20b), citing a likely negative bias. Despite the current challenges, the residential and commercial sectors continue to show promising growth.
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