The scarcity of land in Singapore, coupled with its growing population, has made condos a highly sought-after property in the country. As Singapore is a small island nation, there are limited options for land development, leading to strict land use policies and a fiercely competitive real estate market. As a result, property prices continue to rise steadily, making real estate investment, especially in condos, a profitable opportunity with the potential for capital appreciation. Keeping this in mind, the introduction of new condo launches has further intensified the demand for condos, offering even more attractive investment prospects.
As reported by Colliers, in the second half of 2024, institutional investments in Asia Pacific (Apac) real estate amounted to a total of US$83.2 billion ($112 billion), marking a 6% increase from the previous year. This brings the overall investments for the entire year of 2024 to US$155.9 billion, registering a 12% rise year-on-year. The figures pertain to the top nine real estate markets in the region, namely Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.The upsurge in investments reflects the resilience of Apac’s real estate market, laying the foundation for a robust year ahead in 2025, according to Chris Pilgrim, the managing director of global capital markets, Asia Pacific at Colliers. He adds that in key markets such as South Korea, Taiwan, and New Zealand, the growth is being largely driven by domestic investors, with over 80% of real estate inflows originating from local sources in 2H2024.Read also: CBRE: Apac investors planning to ramp up acquisitions of hotel properties in 2025AdvertisementAdvertisementIn terms of investment volume, the office sector was the leading contributor, making up US$26.5 billion (32%) of the total investments in 2H2024. For the year 2024 as a whole, office investments amounted to US$51.4 billion, marking a 14% increase year-on-year.The industrial and logistics sector emerged as the second largest contributor, accumulating US$22.6 billion in investments in 2H2024, accounting for 27% of the total investments. This brings the total investments in this sector for the entire year of 2024 to US$39.4 billion, recording a substantial 29% rise year-on-year.In terms of transactions, the retail sector saw a significant rebound in 2H2024, registering a total of US$15 billion in investments, driven by major deals in Australia and South Korea. Overall, investments in the retail sector in 2024 amounted to US$26.1 billion, rising by 27% year-on-year.Pilgrim predicts that domestic capital will continue to dominate the majority of markets in 2025, while offshore investments are set to increase due to improving investor confidence and attractive valuations. He also believes that while the office and industrial segments will maintain strong investments, the retail, hospitality, and alternative asset classes are also expected to gain traction as investors capitalize on the recovering market and evolving consumer trends. “With buoyant economic growth and continued policy support, the Apac real estate market is poised to experience sustained investment activity in 2025,” he says.