Investors flush with capital as standout assets grow scarce

Capital will likely gravitate towards assets with redevelopment potential.

Competition for Singapore's most sought-after real estate assets is intensifying, with investors holding ample capital but increasingly struggling to find opportunities worth pursuing, according to Colliers.

Investment sales reached $15.6b in the second quarter of 2026, bringing total transaction volume for the first half of the year to more than $32b, the property consultancy said in its latest Investment Market Insights report.

Whilst activity moderated from a record first quarter, volumes remained well above historical norms, supported by a widening range of opportunities across the commercial, residential, hospitality and industrial sectors, the report said.

"The conversation has shifted from if investors will deploy capital to where they will deploy it," said Terry Wong, head of capital markets and investment services at Colliers Singapore. "The market is no longer short of capital; it's short of opportunities that genuinely stand out."

Commercial assets continued to anchor activity, whilst six Government Land Sales sites generated $3.2b in sales during the quarter. The $880m collective sale of Loyang Valley reflected continued appetite for redevelopment and repositioning opportunities.

Hospitality investment also gained traction, with more than $1.1b in transactions completed during the quarter, including the $360m sale of The Robertson House by The Crest Collection, brokered by Colliers.

In the industrial sector, demand remained focused on logistics-related assets, including the $322m sale of a non-JTC industrial site for redevelopment into a logistics facility.

Colliers said that rather than a broad-based rise in activity, capital is likely to keep gravitating towards assets with clear leasing fundamentals, redevelopment potential or operational upside. As more owners explore divestment, investors are expected to find a broader range of acquisition opportunities across sectors.

"Competition for high-quality assets remains intense, but investors are increasingly widening their search beyond traditional sectors to identify opportunities that can deliver long-term value and income growth," said Catherine He, head of research at Colliers Singapore. "We expect these trends to support investment activity through the remainder of 2026 and into 2027."

Colliers forecasts total investment sales exceeding $40b in 2026, potentially setting a new high since 2007, when sales reached $43.4b.