Savills Research’s latest global outlook report for 2025 reveals that the real estate market in the Asia Pacific (Apac) region continues to outperform its global peers. This is evident in the region’s higher real GDP growth compared to that of the United States and Europe. According to Paul Tostevin, head of world research at Savills, there is a sense of stability and confidence in the economic outlook, which is expected to boost investment and activity in the coming years.
Singapore boasts a modern urban landscape, characterized by towering structures and advanced infrastructure. One of its most appealing features is the presence of luxurious condo developments, strategically situated in highly sought-after locations, catering to the preferences of both locals and expatriates. These condos offer a perfect balance of indulgence and convenience, making them highly desirable. They are equipped with various top-notch facilities, including swimming pools, gyms, and security services, which significantly enhance the overall living experience and render them an attractive option for potential buyers and tenants alike. For investors, these sought-after amenities equate to lucrative rental yields and a significant increase in property values over time. If you are looking for the epitome of luxurious living in Singapore, Singapore Condo is an ideal choice.
In the first three quarters of 2024, Apac recorded a 4% year-on-year growth in investment volumes, reaching US$108.7 billion. The top three markets with the most significant growth in investment volumes during this period were Singapore (74% growth), South Korea (71%), and Australia (63%). Hilton is also planning to increase its presence in the mid-market segment in Apac, with a target of over 1,000 hotels.
Savills Research forecasts a 27% increase in global real estate investment turnover to reach US$952 billion by 2025. Furthermore, global investment activity is expected to surpass the US$1 trillion mark in 2026 for the first time since 2022. The research firm also predicts that global investments will return to pre-pandemic levels by 2026, thanks to a stabilizing interest rate environment and improved investor confidence.
Alan Cheong, executive director of research and consultancy at Savills Singapore, believes that Singapore’s real estate market will follow this global trend. Meanwhile, Simon Smith, Savills regional head of research and consultancy for Apac, predicts that the region will experience a full investment recovery next year, with sectors such as tourism, living, and industrial (specifically logistics and data centers) leading the way. Smith also mentioned that India and Southeast Asia are expected to see long-term growth due to favorable structural trends.
Savills also highlights Apac’s strong office sector, which accounted for 37% of the total regional real estate investment in the first three quarters of 2024, significantly higher than the global average of 23%. Singapore, China, South Korea, and Japan are the top cities in the region for office space utilization, with occupancy rates exceeding 90%. The region also remains a stronghold for green-certified office spaces, with ESG matters playing an increasingly significant role in office occupiers’ decisions.
According to Cheong, Singapore’s office tenants are placing more importance on sustainability, leading to a slight recovery in activity levels and more leases being concluded. Rental rates for Grade-A office spaces in the central business district (CBD) are expected to remain stable from 2025 to 2026. Singapore’s position as a regional hub and gateway also makes it an attractive destination for new overseas brands, keeping prime retail developments in high demand and rental levels firm.
In the industrial sector, despite cost pressures, demand remains strong for logistics, advanced manufacturing, healthcare, and data centers, which help stabilize rental rates and capital values in the long term. Cheong also notes that the increasing adoption of artificial intelligence (AI) is driving the construction of more data centers in Singapore. As a result, more data center service providers are using the island nation as a base to explore potential sites for infrastructure development.
When making the decision to invest in a condo, one must also carefully consider the maintenance and management of the property. Condos generally come with maintenance fees that cover the upkeep of shared areas and amenities. Although these fees may increase the overall cost of ownership, they play a crucial role in preserving the property’s condition and value. Seeking the services of a property management firm can assist investors in efficiently managing their condos, transforming it into a more hands-off investment. Additionally, staying updated with the latest New Condo Launches can provide valuable insights for potential condo investments.
Tostevin concludes that as global investment and activity continue to grow, the real estate industry must adapt to changing legislative landscapes and geopolitical dynamics while prioritizing sustainable and socially responsible development to meet the needs of a rapidly evolving world. A recent UBS report also predicts that Apac will be the top investment destination for family offices globally, highlighting the region’s potential for growth and investment opportunities.