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Singapore real estate rebounds 28% in 2024, reversing 30% slump

Easing interest rates and renewed investor confidence will likely sustain momentum into 2025, according to CBRE.

Singapore’s real estate investment volumes are projected to grow by 10% year-on-year in 2025, after a sharp rebound seen last year, according to CBRE.

Transaction volumes rose 28% to $28.623b in 2024, reversing a 30.3% decline in 2023. Interest rate cuts in late 2024 boosted investor confidence, and CBRE expects this trend to continue into 2025. 

The industrial and logistics sectors remain the top investment choice, whilst income-generating residential assets have overtaken office properties in popularity.

However, CBRE noted that the real estate market is also expected to see mixed signals amongst industry players in 2025 due to an uncertain macroeconomic outlook, according to CBRE’s 2025 Singapore Real Estate Market Outlook report.

“Overall the challenges weighing on the real estate market have eased with inflation rates stabilising and interest rates beginning to fall. That said, expectations of slackening economic growth in 2025 are hardly helpful to the demand side of the equation,” CBRE managing director for Advisory Services in Singapore, Moray Armstrong, said in a report.

Additionally, some upcoming policy shifts—including the release of the Urban Redevelopment Authority’s Master Plan 2025—are contributing to uncertainty in the sector.

CBRE head of Research for Singapore and Southeast Asia, Tricia Song, noted that despite external uncertainties, limited new supply and steady demand across various real estate segments should keep the market stable and resilient.

Office market
Grade A office rents in Singapore’s Core CBD are projected to grow 2% in 2025, in line with GDP forecasts. 

A limited supply pipeline—about 55% lower than the historical 10-year annual average—will support rents, with demand driven by firms in Banking, Finance, Legal, and Technology sectors. 

However, slower economic growth, high fit-out costs, and cautious expansion strategies may dampen leasing momentum.

Logistics and industrial
Prime logistics rents are expected to remain flat in 2025 due to a significant supply injection, with nearly 5 million square feet of new space entering the market. 

Despite this, pre-commitments for over 60% of the new supply should mitigate downward pressure on rents. 

The manufacturing sector will see uneven growth, with semiconductor firms and advanced manufacturers benefiting from increased AI adoption. 

Some industrial players are also exploring expansion into Johor under the JS-SEZ initiative whilst retaining core operations in Singapore.

Retail market  
Retail prime rents are expected to increase by 2% to 3% in 2025, following a 3.6% rise in 2024 and 4.2% in 2023. 

Growth will be led by Orchard Road and City Hall/Marina Centre, whilst suburban retail rents are forecasted to grow by 1% to 2%.

The continued recovery of inbound tourism, driven by expanded flight connectivity and new attractions, is expected to support the retail sector, although a strong Singapore dollar may affect visitor spending. 

Retail space supply in 2025 is projected to decline by 40.4% compared to the previous year, providing further support for rents.

Residential market
CBRE forecasts residential prices to rise by 3% to 6% in 2025, with rental growth projected at 1% to 3%. 

Home sales, which dropped to a record low in early 2024, rebounded in the final quarter and are expected to continue recovering, with 7,000 to 8,000 new units anticipated to be sold in 2025. 

Developers are set to launch 12,000 to 14,000 units, more than double the 6,647 units in 2024, which may lead to more selective buyer behaviour. Stable land supply is expected to moderate price increases.



 

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