Singapore leads logistics boom in APAC

The city-state also attracted investors’ interest in other sectors.

Demand for logistics services in Asia Pacific (APAC) is seen to gradually recover in 2025, with Singapore being at the forefront of this expansion, according to a new analysis by global fund services provider Vistra and Asia Pacific Real Assets Association.

According to the inaugural Vistra Fund Solutions Friction Index 2025, Singapore saw the highest regional activity, leading in both inquiries and site visits.

This year’s gradual recovery will be supported by the rise in requirements from manufacturers and e-commerce firms.

The analysis also looked into trends in other markets in the region.

When it comes to the real estate sector, Singapore attracted more private capital, with office rental growth subdued.

“Family offices turned to prime retail assets; tourism recovery fueled hotel sector interest, and the logistics market drew diverse investors,” the report read.

Singapore also attracted investors to inject capital into its industrial and hotel property markets.

“Domestic capital will continue to play a dominant role across most markets, whilst offshore investments are set to increase, led by improving investor confidence and attractive valuations,” the report said.

For the rest of the year, Singapore is expected to be one of the economies to lead the growth of commercial real estate.

“Real asset investment volumes in the APAC region are expected to remain progressive in 2025, buoyed by easing inflation, healthy economic growth prospects and a potential decline in borrowing costs,” the report said.

Commercial real estate transaction volume in the region is projected to rise between 5% to 10% year-on-year in 2025, driven by growth in Singapore, Korea, Australia and Hong Kong. This expansion will also be supported by continued investor interest in Japan and India.

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