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Real estate investment slips in Q1 as private deals slow

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

Real estate investment activity in Singapore declined in the first quarter of 2025, with total investment volume reaching $6.5b, 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%.

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 optimisation. 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.
 

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