Singapore investors are approaching 2025 with measured caution as a confluence of macroeconomic uncertainties and geopolitical tensions tempers investment sentiment across asset classes, despite pockets of opportunity emerging in select sectors.
Heightened global risk factors, including ongoing US-China tensions and unpredictability surrounding possible US tariff moves in 2025, have elevated concerns about cross-border investment strategies and geoeconomic fragmentation. Uncertainty regarding the scale and timing of US Federal Reserve interest rate cuts further affects investor risk appetite, with Singapore-based investors acutely monitoring external risks while prioritizing stability amid increased global volatility.
Net buying intentions for Singapore real estate investors rose to 13% in 2025 from 5% in 2024, reflecting modest improvement in sentiment, though optimism remains measured due to persistent macroeconomic risks.
Nearly half of Singapore-based investors indicated a preference for core and core-plus assets given capital value growth expectations, demonstrating a strategic shift from opportunistic to quality-focused investments that prioritize resilience against external shocks.
Singapore real estate continues to be viewed as resilient due to limited supply, stable yields, and the city-state’s strong global business hub status. Singapore ranks third among cross-border investment destinations, following Tokyo and Sydney, with investors attracted by attractive price points in the market. The city-state’s transparent regulatory frameworks have positioned it among the top three investment destinations in Asia-Pacific.
Offices and data centers have emerged as the fastest-growing asset classes in investor preference for 2025, while industrial properties remain the top targeted sector among core investors.
Healthcare and data center assets represent key alternative investment themes, though investment in living sectors such as retirement living and student housing remains restrained by limited investable stock outside Japan, Australia, and mainland China.
Private equity allocations are increasing among 62% of Singapore institutions for diversification and risk management purposes, with North America and developed Asia-Pacific prioritized over emerging Asia-Pacific markets. Interest in European markets is gaining momentum, with 63% of LPs planning investments in Europe within the next two years as capital allocation shifts toward mature, stable markets.
Interest in opportunistic strategies continues to weaken as the quality of assets and counterparties receives greater emphasis.
Democratization of private markets is gaining traction, with 70% of respondents expecting at least half of private fundraising to occur via retail-like products within two years.
Additionally, 87% of Singapore institutional respondents recognize major opportunities in utilizing GenAI and large language models to process unstructured investment information, underscoring technology’s growing role in investment decision-making.
