Savills Singapore Lowers 2025 Investment Sales Forecast 23 Bil 20 Bil Us Tariffs Impact
Savills Singapore has updated its previous prediction of $23 billion for the total investment sales in 2025 to be now $20 billion. This revision takes into account the negative impact of US tariffs, as announced by the Trump administration on April 9. While the temporary freeze on tariffs has provided some relief, the actual impact on Singapore’s real estate market will largely depend on the outcomes of negotiations between the US and other regional countries, according to a press release by Savills.
Alan Cheong, executive director of research and consultancy at Savills Singapore, believes that there might be a reduction in tariffs following negotiations, but it will take time and the outcomes may differ from country to country. He also mentions that “if enough countries were to remove them and the US reciprocates, then the benefits that would have accrued to those that did not remove would flow to those that did.”
Cheong adds that it is too early to determine the medium to longer-term impact of the tariff situation on the Singapore real estate market. However, he observes that the ongoing geopolitical tensions and trade disruptions caused by Trump’s tariff intentions have contributed to a slowdown in investment activities in Singapore in the last quarter.
During the first quarter of 2025, investment sales in Singapore amounted to $5.8 billion, which is 24% lower than the previous quarter’s $7.64 billion. This slump is also attributed to the uncertainties in the market, as well as a gap between buyers and sellers in terms of price expectations, causing some vendors to delay or call off divestments.
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While the public sector witnessed a surge of 45.1% quarter-on-quarter (q-o-q) in investments to $2.79 billion, private sector deals dropped by 47.3% q-o-q to $3.01 billion during the same period.
The top private investment sales for the first quarter of 2025 were primarily residential, with a total value of $3.77 billion, accounting for 64.9% of total sales and reflecting a 47.4% q-o-q increase. This growth is mainly due to the acquisition of five private residential land parcels through the Government Land Sale (GLS) program, which amounted to $2.78 billion in investment sales.
In the public sector, the top land sales during the first quarter of 2025 were also residential, which amounted to $972.1 million. The top private residential deals of last quarter included the sale of River Valley Apartments for $56 million to a Singapore family office, as well as the sale of a Good Class Bungalow in Cluny Hill for $58 million.
In the commercial sector, investment sales saw a spike of 54.2% q-o-q to $1.49 billion, primarily due to the acquisition of Northpoint City South Wing by Frasers Centrepoint Trust for approximately $1.13 billion.
The hospitality sector also saw an increase of 26.5% q-o-q to $332.8 million in investment sales, with deals such as the sale of Oakwood Studios Singapore for $152.8 million, and boutique hotel 21 Carpenter for $100 million.
However, the industrial sector experienced a significant decline of 90.3% q-o-q to only $211.2 million in investment sales, mostly due to the slowdown in investments by S-REITs, as well as a lack of interest in industrial land tenders through the GLS program. In the private sector, only seven industrial deals worth a total of $199.4 million were recorded in the first quarter of 2025.