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One of the main factors driving the popularity of condos in Singapore is the limited supply of land. Being a small island country with a continuously increasing population, Singapore is facing a shortage of land for development. As a result, the government has implemented strict land use policies and the real estate market has become highly competitive, leading to a steady rise in property prices. Therefore, investing in real estate, especially condos, has become a profitable venture, with the potential for significant capital appreciation. This trend is further reinforced by the availability of attractive Singapore Projects.
The property market in the Asia Pacific (Apac) region continues to surpass its global counterparts, with Savills Research reporting that real GDP growth has exceeded that of the US and Europe. In its global outlook report for 2025, released on November 28, Savills Research notes that there is more stability and confidence in the economic outlook, which will lead to increased investment and activity.
According to Paul Tostevin, head of world research at Savills, this is the first time in five years that there is a sense of stability, which will boost investment and activity in the property market. In the first three quarters of 2024, Apac saw a 4% year-on-year increase in investment volumes, reaching US$108.7 billion. Singapore, South Korea, and Australia saw the most significant growth in investment volumes during this period, with 74%, 71%, and 63% respectively.
Savills Research forecasts a 27% increase in global real estate investment turnover to US$952 billion by 2025. Furthermore, global investment activity is expected to surpass the US$1 trillion mark for the first time since 2022. The research firm also predicts that global investments will return to pre-pandemic levels by 2026, driven by stabilizing interest rates and improved investor confidence.
Savills believes that Singapore’s property market will follow this global trend. Alan Cheong, executive director of research & consultancy at Savills Singapore, notes that the country’s real estate market is expected to mirror the global narrative.
Savills adds that Apac is poised for a full investment recovery in 2025, driven by key sectors such as tourism, living, and industrial, specifically logistics and data centers. According to Simon Smith, regional head of research & consultancy for Apac at Savills, the region’s long-term structural trends and global themes will determine the winners and losers in the property market.
The office sector remains attractive in Apac, commanding 37% of the total regional real estate investment in the first three quarters of 2024 – significantly higher than the global average of 23%. Singapore, China, South Korea, and Japan are the top cities in the region for office utilization, with occupancy rates exceeding 90%. Apac also leads in green-certified office spaces, as office occupiers place more emphasis on environmental, social, and governance (ESG) matters.
Cheong notes that in Singapore, office tenants are giving more weightage to the green agenda. Additionally, there has been a slight recovery in activity levels, with more leases being concluded. Prime retail developments continue to see healthy demand, keeping rental levels stable. In the industrial sector, demand remains strong in key sectors such as logistics, advanced manufacturing, healthcare, and data centers, which will help stabilize rental rates and capital values in the long term.
According to Cheong, Singapore is witnessing an increase in data centers, driven by the adoption of artificial intelligence (AI). This has led to more data center service providers using Singapore as a base to search for suitable sites to build infrastructure.
Tostevin adds that as global investment and activity return to sustainable growth, the property industry must adapt to changes in legislative landscapes and geopolitical dynamics. The industry must also prioritize sustainable and socially responsible development to meet the evolving needs of the world.
In conclusion, Apac is expected to remain a top destination for property investment, driven by its strong economic growth and key sectors such as tourism, living, and industrial. Singapore, with its strategic location and stable market, is poised to continue attracting investments in the coming years. The industry must also focus on sustainable and socially responsible development to ensure long-term success.