2025 Singapore Real Estate Market Outlook

Economy

• GDP is expected to grow at 1 – 3% in 2025, slower than 2024’s 4.0% y-o-y growth. Challenges include protectionist policies under the new Trump administration, anticipated slower growth among key trading partners, and possible escalation in geopolitical tensions. Nevertheless, growth momentum from the ongoing manufacturing sector recovery is expected to sustain into early 2025 and labour market conditions should remain stable. 

Office

• Improvement in take-up and occupancy in Q4 2024 bodes well for the office market, but upcoming lease expiries and low precommitment levels for new offices are potential concerns. Tentative demand, limited medium-term supply and continued flight to quality should see Core CBD (Grade A) rents grow modestly in 2025.

Industrial & Logistics

• Expansionary demand by occupiers was subdued in 2024 amid cost pressures and supply chain disruptions triggered by the Red Sea crisis. Growth across different manufacturing clusters is expected to be uneven in 2025. Amid the JS-SEZ initiative, Singapore continues to attract sizeable investments from manufacturers, reinforcing its position as an advanced manufacturing hub.

Retail

• Retailers’ expansionary appetite is expected to remain strong in 2025, although ongoing challenges have slightly weakened demand. Expectations of a full tourism recovery to pre-COVID levels and below-historical-average future supply should support retail rents.

Residential

• Buying sentiment and appetite has improved amid lower mortgage rates and developers will be more likely to push ahead with launches in 2025. Rents are likely to remain under pressure in the near term, although the market is showing signs of stabilisation.

Investment

• Singapore ranks among the top 3 investment destinations in APAC in 2025. Transaction volumes should continue to recover amid expected rate cuts, although downside risks remain with uncertain economic and geopolitical environment. Investors are expected to be selective, opting to allocate capital into specific sectors or strategies with a more favourable outlook.