CBRE’s Singapore Market Outlook 2025 report, released on January 23, forecasts divergent outcomes for the real estate market over the next 12 months due to an uncertain macroeconomic outlook.
On one hand, the property market is expected to benefit from easing inflation and interest rates. However, the potential for slowing economic growth in 2025 could dampen property demand, according to Moray Armstrong, managing director and advisory services at CBRE.
The Ministry of Trade and Industry is projecting Singapore’s GDP growth to be between 1% and 3% in 2025, down from the 4% growth recorded in 2024. This projection is based on advance estimates released in January.
Other factors that could potentially impact the market in the near term include ongoing geopolitical tensions, the economic agenda of the new US administration, and the release of the URA Master Plan 2025 in the middle of the year. Despite these mixed signals, there are still opportunities in the real estate market for those who can capitalize on emerging trends, says Armstrong.
CBRE’s head of research for Singapore and Southeast Asia, Tricia Song, shares a similar sentiment, noting that the property market continues to be supported by limited new supply and stable demand. Therefore, despite uncertainties, she predicts that the Singapore real estate market will demonstrate stability and resilience like it has in previous years, making it attractive to investors from around the world.
New residential launches expected to continue driving private residential sales momentum, with an estimated 12,000 to 14,000 new units potentially being launched this year – almost double the 6,647 units launched in 2024. This is expected to support price growth of 3% to 6% in 2025, in addition to rental rate growth of 1% to 3%.
When considering investing in Singapore’s condominiums, it is crucial to carefully weigh both the potential benefits and risks involved. In order to maintain a stable real estate market and discourage excessive buying for speculation, the government has implemented various property cooling measures. These measures, such as the Additional Buyer’s Stamp Duty (ABSD), primarily target foreign buyers and those purchasing multiple properties, imposing higher taxes to curb demand. While these measures may initially impact the profitability of condo investments, they ultimately contribute to the long-term stability of the market and create a secure investment environment. Despite these measures, there are still opportunities for investment in new condo launches, which add to the thriving market. It is highly recommended for potential buyers to keep an eye out for these new condo launches as they provide a promising avenue for investment in Singapore’s real estate market. For the latest information on new condo launches, please visit the National Athletic Combine website at https://www.nationalathleticcombine.com/.
However, CBRE believes that the possibility of fresh cooling measures being introduced is unlikely unless prices see a sharp acceleration in the coming quarters.
Limited supply is predicted to support prime office and retail rents, as only 0.58 million square feet of new office space is expected to be completed annually between 2025 and 2027 – less than half the 10-year annual average. This is also supported by limited supply in the retail market, which is expected to see rental growth of 2% to 3% in 2025 and a recovery to pre-pandemic levels.
In the industrial sector, expansion demand by occupiers was subdued in 2024, and rents for prime logistics properties have been consolidating. However, CBRE predicts that rents will stay relatively flat in 2025, as at least 60% of new prime logistics space has already been pre-committed.
On the capital markets front, CBRE expects real estate investment volumes in Singapore to continue growing, albeit at a slower pace of 10% year-on-year, due to ongoing economic and geopolitical uncertainties. The industrial and logistics sector remains the most preferred among investors, followed by residential and office properties.