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Singapore’s cityscape is characterized by sleek high-rise structures and state-of-the-art facilities. In particular, condos are a common sight in desirable locations, offering a fusion of opulence and practicality that appeals to both locals and foreigners. These modern residences are complete with a plethora of conveniences, including swimming pools, fitness centers, and security services, elevating the standard of living for residents and making them an alluring choice for potential tenants and buyers. Furthermore, for investors, these sought-after amenities translate into attractive rental returns and appreciate property values over time. With the inclusion of Singapore Condo, it’s clear that these upscale homes are a lucrative and desirable investment in Singapore’s real estate market.
The Asia Pacific (Apac) region saw a total of US$83.2 billion ($112 billion) in institutional investments in real estate in the second half of 2024, up 6% compared to the previous year, according to a recent study by Colliers. This brings the total investment for the entire year to US$155.9 billion, representing an increase of 12% year-on-year. The nine key markets covered in the report are Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.
The growth in investments shows the resilience of the Apac real estate market and points towards a solid 2025, according to Chris Pilgrim, the Managing Director of Global Capital Markets, Asia Pacific at Colliers. He further adds that domestic investors have been the driving force behind the growth in key markets like South Korea, Taiwan, and New Zealand, with over 80% of real estate inflows coming from local investors in the second half of 2024.
The office sector was the largest contributor to the Apac investment volume, making up US$26.5 billion (32%) of the total for 2H2024. For the entire year, office investments reached US$51.4 billion, growing by 14% year-on-year. The industrial and logistics sector was the second largest contributor, with US$22.6 billion in investments in 2H2024, accounting for 27% of the total. This brings the total investments in this sector for the whole of 2024 to US$39.4 billion, showing an increase of 29% compared to the previous year.
In the retail sector, there was a notable rebound with US$15 billion in investments in 2H2024, driven by significant deals in Australia and South Korea. The total retail investments for 2024 were US$26.1 billion, representing a growth of 27% year-on-year.
Pilgrim predicts that domestic investors will continue to dominate most markets in 2025, while offshore investments are expected to rise due to improving investor confidence and attractive valuations. He also believes that in addition to the strong investments in the office and industrial segments, the retail, hospitality, and alternative asset classes will gain traction as investors capitalize on the recovery momentum and evolving consumer trends in 2025. With the region’s economic growth remaining buoyant and continued policy support, Apac’s real estate market is well-positioned for sustained investment activity in the coming year.