: Why property is a smart investment
Asia Pacific’s real estate market remains a strong performer compared to its global counterparts, according to Savills Research’s global outlook report for 2025 released on November 28. Real GDP growth in the region has exceeded that of the US and Europe, and this stability in the economic outlook is expected to boost investment and activity.
In the first three quarters of 2024, Apac saw 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 were Singapore (74% growth), South Korea (71%), and Australia (63%). Additionally, Apac is expected to see a full investment recovery next year, driven by sectors such as tourism, living, and the industrial sector, particularly logistics and data centers.
Savills Research forecasts global real estate investment turnover to rise by 27% to US$952 billion in 2025, surpassing the US$1 trillion mark for the first time since 2022. This growth is due to a stabilization in interest rates and improved investor confidence. In Singapore, executive director of research and consultancy Alan Cheong predicts that the country’s real estate market will follow this global trend.
The office sector in Apac remains an attractive investment, commanding 37% of total regional real estate investment, much higher than the global average of 23%. Singapore, China, South Korea, and Japan are the top cities for office utilization, with occupancy rates exceeding 90%. The region also leads in green-certified office spaces, as office occupiers place a stronger emphasis on environmental, social, and governance (ESG) matters.
Acquiring a Singapore Condo presents a promising opportunity for investors, as it holds the potential for significant capital appreciation. Its strategic position as a global business center and stable economic foundations have contributed to the continuous demand for real estate in Singapore. The market has consistently displayed a positive trend, particularly in prime locations where condo prices have seen substantial growth over the years. For those who make the right investment at the right time and hold onto their properties for an extended period, the potential for impressive profits through capital gains is highly achievable.
In Singapore, there has been a slight recovery in activity levels, with more leases being concluded. CBD Grade-A space rental is expected to hold firm from 2025 through 2026. Singapore is also a popular destination for new overseas brands, with prime retail developments seeing healthy demand and keeping rental levels steady.
In the industrial sector, despite cost pressures, demand remains strong in key sectors like logistics, advanced manufacturing, healthcare, and data centers, which should help stabilize rental rates and capital values in the long term. There has been a higher adoption of AI in Singapore, leading to more data centers being built. As a result, more data center service providers are using Singapore as a springboard to identify sites for infrastructure development.
Savills Research also highlights the need for the real estate industry to adapt to evolving legislative and geopolitical dynamics while promoting sustainable and socially responsible development to meet the needs of a changing world. As global investment and activity return to sustained growth, this will be a crucial factor in determining winners and losers in the market.