Calm before the rising swell
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Investment
- Singapore’s investment sales activity softened in 2Q 2025, reaching S$5.5 billion, primarily due to pricing mismatch and prevailing cautious market sentiment among investors.
- Further easing of interest rates is expected to fuel investor confidence. Given that total investment sales reached $11.2 billion in 1H 2025, the market is projected to achieve total investment sales amounting to between S$20 and S$25 billion for the full year.
Office
- Office rents in the central region remained stable in 1H 2025, as the 0.3% QoQ decrease in 2Q 2025 was offset by the 0.3% gain in 1Q 2025. Shadow space increased by 12.5% QoQ to 420,000 sq ft.
- The limited supply pipeline for the rest of 2025 until 2027 will favour CBD premium and Grade A office spaces which are expected to experience modest rental growth in 2025.
Industrial
- Industrial property prices rose 1.4% QoQ in 2Q 2025, led by multiple-user factories. Overall occupancy dipped slightly to 88.8% due to an increase in supply.
- The supply pipeline of industrial space for the rest of 2025 is expected to reach approximately 3.0 million sq ft (GFA). The new supply is likely to add downward pressure on the overall rental rates for the rest of 2025.
Retail
- In 2Q 2025, rental rates across all segments showed steady growth, with prime first-storey rents on Orchard/Scotts Road increase by 0.5% to S$41.60 per sq ft, driven by limited supply and steady tourism activity. Meanwhile, islandwide retail occupancy rate stood at 92.9% during the quarter, slightly down from 93.2% in 1Q 2025.
- Retail rents is expected to rise modestly in the near term. Rising business costs and tighter manpower regulations may keep retailers cautious, with leasing activity mainly focused on relocations or downsizing, instead of new store openings.
Residential
- Private home prices rose 1% QoQ in 2Q 2025, driven by landed homes and non-landed CCR and OCR segments. Transaction volume fell 29.4% due to a decline in new project launches during the quarter. Meanwhile, rental market remained stable with a 0.8% QoQ increase.
- Prices is expected to rise by 3-5% for the whole of 2025, with around 21,000 to 24,000 units being transacted.