Singapore’s capital markets outlook strengthens as 2026 investment picks up

Core investors are expected to return more decisively next year. 

Singapore’s capital markets outlook is strengthening heading into 2026, with lower borrowing costs, mild inflation, and resilient leasing across office, retail, and industrial segments creating a supportive backdrop for higher investment sales, according to a Cushman & Wakefield.

Investment activity has already picked up. Total investment sales recorded so far in 2025 have exceeded the whole of 2024, and analysts expect 2026 volumes to surpass 2025 as confidence improves.

Investment activity is already turning higher. Year-to-date, 2025 investment sales have surpassed the whole of 2024, and analysts expect 2026 volumes to push past 2025 as confidence returns.

Deals of at least $10m this year show capital concentrating in residential Government Land Sales sites, which account for 32.4% of activity.

Core investors are expected to return more decisively next year. Yield spreads have narrowed back toward pre-rate-hike levels from 2019, improving financing conditions and reopening core strategies, particularly in office and retail.

Industrial assets are set to remain a high-conviction theme and are expected to form the second-largest contributor to investment sales after residential, spanning prime logistics, business parks, data centres, and worker dormitories.

Land and en-bloc activity remains selective. Most residential land sales are driven by the Government Land Sales programme. The private en-bloc market continues to face bid-ask gaps, though smaller and well-located sites have better prospects. In the industrial sector, two freehold en-bloc transactions have closed this year, the strongest showing since 2017.

In strata markets, strata-office sales have reached about 84% of last year’s volume, supported by multi-floor transactions. Shophouse activity in the central business district is at a record low because of scarce stock and uncertainty, although prices have edged up this year.

Overall, analysts see 2026 as a favourable entry point, supported by wider spreads between property and bond yields, limited new supply, and cheaper debt.

Core office and retail are expected to lead allocations, with value-add and redevelopment opportunities in industrial assets also standing out.