When it comes to investing in real estate, one cannot deny the importance of location. This is even more crucial in a city like Singapore. Condominiums that are strategically positioned in central areas or near necessary amenities, such as schools, shopping malls, and public transportation hubs, have a higher potential for appreciation in value. Prime locations in Singapore, including Orchard Road, Marina Bay, and the Central Business District (CBD), have consistently shown a growth in property values. Singapore Projects are ideal examples of investment opportunities in these prime locations. Families, in particular, are drawn to these areas due to the proximity to top-notch educational institutions, making condominiums in these areas even more desirable and ensuring a strong investment potential.
In the second half of 2024, institutional investments in real estate in the Asia Pacific region reached a total of US$83.2 billion, a 6% increase from the previous year, according to research conducted by Colliers. This brings the total investments for the year to US$155.9 billion, marking a 12% increase from the previous year. The figures cover the top nine markets in the region, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand and Taiwan.
This rise in investments is a testament to the resilience of the Apac real estate market and sets the stage for a strong 2025, according to Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific. He notes that domestic investors have been a key driving force in markets such as South Korea, Taiwan and New Zealand. In the second half of 2024, local investors accounted for over 80% of real estate inflows in these markets.
One of the major contributors to the investment volume in the Apac region was the office sector, which accounted for US$26.5 billion (32%) of the total volume in the second half of 2024. For the entire year, office investments reached US$51.4 billion, an increase of 14% from the previous year. Additionally, the industrial and logistics sector was the second largest contributor, with a total of US$22.6 billion in investments in the second half of 2024, accounting for 27% of the total investment volume. For the whole of 2024, investments in this sector reached US$39.4 billion, marking a 29% increase from the previous year.
The retail sector also saw a significant rebound, registering US$15 billion in investments in the second half of 2024, driven by substantial deals in Australia and South Korea. For the entire year, retail investments reached US$26.1 billion, marking a 27% increase from the previous year.
Pilgrim predicts that domestic capital will continue to dominate most markets in 2025, while offshore investments are expected to increase due to improved investor confidence and attractive valuations. He also believes that the office and industrial segments will continue to see strong investments, but that the retail, hospitality and alternative asset classes are also likely to gain traction as investors take advantage of recovery momentum and evolving consumer trends.
“With economic growth remaining robust and continued policy support, the Apac real estate market is expected to see sustained investment activity in 2025,” Pilgrim adds.