Singapore holds steady cap rates across commercial assets: report

Office properties recorded cap rates between 3.00% and 3.50%, among the lowest in the region.

Singapore’s commercial real estate market remained a beacon of stability in the first quarter of 2025, according to the latest Asia Pacific Cap Rates Report by Colliers.

Whilst regional investors navigated uncertainty around global tariffs and interest rate shifts, Singapore’s investment landscape stayed calm, with minimal changes in asset yields across office, retail, and industrial sectors.

Cap rates for prime assets in Singapore continued to reflect the city-state’s low-risk profile. Office properties recorded cap rates between 3.00% and 3.50%, among the lowest in the region.

Retail assets ranged from 4.30% to 4.80%, while industrial properties posted slightly higher rates of 5.25% to 6.25%. These stable figures suggest strong investor confidence and limited pricing volatility despite broader economic headwinds.

Macroeconomic indicators further reinforced the country’s resilient market position. Singapore reported a low inflation rate of 0.9% and a competitive interest rate of 2.56%, helping to anchor investor sentiment and support steady capital flows.

In contrast to cities like Jakarta, where industrial cap rates shifted notably, or Hong Kong, where rising vacancies pressured values, Singapore’s market has held firm.