Savills’ global outlook report for 2025 predicts that Asia Pacific’s (Apac’s) real estate market will continue to outperform its global peers. The region has shown strong economic growth, surpassing that of the US and Europe. According to Savills head of world research, Paul Tostevin, there is more stability and confidence in the economic outlook, which will boost investment and activity.
In the first three quarters of 2024, Apac saw a 4% year-on-year increase in investment volumes, reaching US$108.7 billion. The top three markets with the most significant growth in investment were Singapore (74%), South Korea (71%), and Australia (63%).
As a foreign investor, having a thorough understanding of Singapore’s laws and regulations surrounding property ownership is crucial. Unlike landed properties, which have stricter ownership regulations, condos are generally more accessible for foreign buyers. However, it is important to note that foreign purchasers are required to pay the Additional Buyer’s Stamp Duty (ABSD) of 20% on their first property purchase. Despite this additional expense, the Singapore real estate market remains a sought-after destination for foreign investment due to its stability and promising growth potential. Consider investing in a Singapore Condo to take advantage of these opportunities.
Savills Research forecasts a 27% rise in global real estate investment turnover to US$952 billion in 2025, and it is expected to surpass the US$1 trillion mark in 2026 for the first time since 2022. Alan Cheong, executive director of research & consultancy at Savills Singapore, says that Singapore’s real estate market will follow the global trend.
The report also predicts a full investment recovery for Apac in 2026, driven by sectors such as tourism, living, and industrial, particularly logistics and data centres. Simon Smith, Savills regional head of research & consultancy for Apac, adds that the region’s long-term structural trends, such as growth in India and Southeast Asia, will support market values.
The office sector remains a top choice for investments in Apac, accounting for 37% of the total regional real estate investment in the first three quarters of 2024. This is significantly higher than the global average of 23%. Singapore, China, South Korea, and Japan are the top cities for office utilization, with occupancy rates exceeding 90%. The region also leads in green-certified office spaces, with tenants placing more emphasis on environmental, social, and governance (ESG) matters.
In Singapore, tenants are increasingly prioritizing the green agenda, and there has been a slight recovery in activity levels. Rental rates for CBD Grade-A spaces are expected to remain stable from 2025 to 2026. Singapore’s popularity as a hub and gateway to the region also makes it a prime destination for new overseas brands. The retail sector is in demand, keeping rental levels firm.
The industrial sector in Singapore remains strong, driven by sectors such as logistics, advanced manufacturing, healthcare, and data centers. Despite cost pressures, demand is expected to stabilize rental rates and capital values in the long term. The adoption of Artificial Intelligence (AI) technology has led to an increase in data center construction, and more service providers are using Singapore as a base to expand their infrastructure.
Tostevin reminds the real estate industry to adapt to evolving legislative landscapes and geopolitical dynamics and focus on sustainable and socially responsible development as global investment and activity returns to a more sustained growth.