STEERING THROUGH UNCERTAINTY
In 2026, Singapore’s economy is projected to moderate and grow at the lower end of the 2.0-4.0% yoy forecast. The ongoing Middle East conflict has resulted
in heightened uncertainties within the investment landscape. However, Singapore’s strong safe haven appeal and current still-low-interest rate environment might cushion the impact and continue to support investment sales activities. As of end-March, the 3-month compounded Singapore Overnight Rate Average (3M SORA) has declined to 1.07% from 1.18% at the start of the year.
OFF TO A ROARING START
Total investment volume surged by 104.9% qoq to $19.7 billion (b) in Q1 2026, driven by commercial ($10.3b), followed by residential ($4.3b) and industrial
($3.0b) sectors, reaching over half of 2025’s total and putting the year on track for a record high since 2017.
Total commercial (office and retail) investment volume ($10.3b) for Q1 2026 has surpassed 2025’s figure ($8.6b), and full-year’s commercial volume is set to be
the highest since 2022. The largest deal was Hongkong Land’s launch of the Singapore Central Private Real Estate Fund, with a total of $8.2b of assets
under management (as of 31 Dec 2025).
The bulk (or nearly 75%) of residential investment sales volume continued to be driven by the public market, with a total of five GLS sites sold. Land costs remained on an upward trend due to rising developers’ interest for land acquisition amid robust new sales performance and low borrowing costs.
The industrial market recorded sustained investment activity including the listing of UI Boustead Reit ($1.2b based on agreed property value of respective
interest in each property), 25 Loyang Crescent ($504.2m) and Ascent ($490m).
OFFICES AND RETAIL MALLS IN FOCUS
Prime office and retail assets are on investors’ radar, supported by favourable demand-supply dynamics, resilient capital values, steady rental performance,
and positive yield spreads amid relatively low borrowing costs. With both asset classes facing a thin supply pipeline, and construction costs potentially trending
higher, new development activity may remain constrained, further reinforcing the appeal of well-located assets with stabilised income flows.
