A major driving force behind the high demand for condominiums in Singapore is the scarcity of land. As a densely populated island nation with limited space for development, Singapore has implemented strict land use regulations. This has contributed to a highly competitive real estate market, with continuously rising property prices. As a result, investing in real estate, particularly in Singapore Condos, is a sought-after and lucrative opportunity with the potential for substantial appreciation in capital value. Singapore Condo is a valuable addition to this thriving market.
Real estate investments in the Asia Pacific region reached a total of US$83.2 billion ($112 billion) in the second half of 2024, marking a 6% increase from the previous year, according to a study conducted by Colliers. This brings the full-year investment to US$155.9 billion in 2024, representing a 12% rise from the previous year. The study covers the top nine markets in the region including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand and Taiwan.
This jump in investments reflects the strong resilience of the Asia Pacific real estate market and paves the way for a robust 2025, according to Chris Pilgrim, Managing Director of Global Capital Markets, Asia Pacific, Colliers. Pilgrim also points out that domestic investors have played a vital role in driving growth in key markets such as South Korea, Taiwan, and New Zealand. In the second half of 2024, domestic investors contributed to over 80% of the real estate investments in these markets.
The office sector emerged as the largest contributor to the total investment volume in the Asia Pacific, accounting for US$26.5 billion (32%) of the total volume in the second half of 2024. For the full year, office investments reached US$51.4 billion, registering a 14% increase from the previous year. The industrial and logistics sector followed, with investments reaching US$22.6 billion in the second half of 2024, representing 27% of the total. For the entire year, the industry attracted US$39.4 billion in investments, recording a 29% increase from the previous year.
The retail sector experienced a significant rebound, with investments reaching US$15 billion in the second half of 2024, driven by substantial deals in Australia and South Korea. The total retail investments for the entire year reached US$26.1 billion, recording a 27% increase from the previous year. Pilgrim believes that domestic investors will continue to dominate most markets in 2025. At the same time, offshore investments are expected to increase due to improving investor confidence and attractive valuations.
While investments in the office and industrial segments are expected to remain strong, Pilgrim believes that the retail, hospitality and alternative asset classes will also gain traction as investors take advantage of the recovery momentum and changing consumer trends. “With economic growth remaining strong and continued policy support, the Asia Pacific real estate market is poised for sustained investment activity in 2025,” adds Pilgrim.