Singapore’s real estate market experienced varied performance in the first quarter of 2025, according to the latest report by Edmund Tie & Company. Investment sales totalled S$5.8b, an 11.6% decrease from the previous quarter but a 38.4% increase year-on-year. This was driven by six Government Land Sales (GLS) sites, contributing S$3.6b, as developers cautiously navigated rising development costs and economic uncertainties.
Office rents in Singapore rose by 0.3% quarter-on-quarter, reversing a two-quarter decline. The island-wide office occupancy rate dipped slightly to 94.5%, with net absorption reaching 518,000 square feet, supported by new developments like Keppel South Central. The demand for premium and Grade A office spaces remained strong, particularly in the Central Business District (CBD).
In the industrial sector, property prices increased by 1.5% quarter-on-quarter, with multiple-user factory prices rising by 1.9%. The occupancy rate held steady at 89.0%, whilst rental rates in the warehouse and logistics segment rose by 0.3%.
The retail sector maintained stability, with tourist arrivals at 4.3 million, indicating a return to pre-pandemic levels. However, the island-wide retail occupancy rate fell to 93.2%, as central area retail spaces faced selective leasing demand.
Looking ahead, Singapore’s real estate market is projected to reach S$20 to S$24b in investment sales for 2025. Despite challenges such as high borrowing costs and rising construction expenses, the market is expected to benefit from strategic opportunities and upcoming GLS tenders.
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