An IMGlobalWealth.com News Report
Singapore’s property investment market recorded its strongest performance in eight years in 2025, supported by a combination of lower asking prices, easing financing conditions, and improving investor sentiment.
Total investment sales climbed 27% year-on-year to SGD34.12 billion (US$26.9 billion), the highest level since 2017, according to data from Savills, as reported by The Straits Times.
Public-sector investment sales rose by 32%, driven largely by an increase in state land tenders, while private-sector investment grew by 23%, reflecting renewed appetite for prime residential and commercial assets.
“Looking ahead, analysts expect redevelopment activity to gather pace as Singapore’s existing building stock continues to aGe”
Residential Leads the Market
Residential investment accounted for the largest share of total transactions in the fourth quarter, reaching SGD4.4 billion and representing 40% of overall investment sales.
Savills noted that demand for high-end residential properties, particularly landed homes,strengthened in the second half of the year, underpinned by lower borrowing costs and improving buyer confidence.
The most expensive residential transaction of the quarter was a Good Class Bungalow on Peirce Road, which reportedly sold for SGD148 million, highlighting sustained demand for ultra-prime assets despite broader market moderation.
Commercial and Industrial Segments
Commercial real estate made up 31.5% of total investment activity, while the industrial segment accounted for 19.4%, reflecting continued interest in logistics, business parks, and mixed-use developments.
“With interest rates expected to remain relatively low, asking prices having adjusted downward, and opportunities to reposition assets into newer formats, more properties are now achieving positive carry for prospective buyers,” said Alan Cheong, Executive Director of Research and Consultancy at Savills Singapore.
He added that if local equity markets continue to perform well, a rise in property-related listings could follow, potentially expanding capital market activity within the sector.
Outlook: Redevelopment and Urban Renewal
Looking ahead, analysts expect redevelopment activity to gather pace as Singapore’s existing building stock continues to age. Government incentive schemes aimed at encouraging urban renewal and asset rejuvenation are likely to support this trend.
For global investors and family offices, Singapore’s latest investment figures reinforce its status as one of Asia’s most resilient and transparent real estate markets — combining political stability, strong legal frameworks, and sustained demand for prime assets across residential, commercial, and industrial sectors.
In a broader regional context, Singapore-based developers are also expanding overseas. Recently, Ho Bee Land, controlled by billionaire Chua Thian Poh, announced the acquisition of a major development site in Australia’s Queensland for approximately US$220 million, underlining the continued international reach of Singapore’s property capital.
