Tariffs Trade And Transformation Dominate Redas Real Estate Market Outlook 2025
The real estate investment market in Singapore experienced a 15% increase in volumes during the second quarter of 2025, driven by a variety of asset classes including industrial and residential developments, according to Michael Tay, deputy managing director, Singapore advisory and head of capital markets Singapore, at CBRE. This data comes from research conducted by CBRE, which also found that total real estate investment activity in Singapore grew by 7% during the first six months of 2025. However, despite the hope that some asset classes would see a repricing in the first half of the year, this did not materialise and most investors are now focusing on core-plus and value-add strategies in Singapore.
The uptick in capital deployment in Singapore was mirrored across key markets in the Asia Pacific region, with Japan, mainland China, South Korea, and Australia emerging as top destinations for inbound real estate investment capital. These insights were shared at the 26th annual Real Estate Market Outlook 2025 conference organised by the Real Estate Developers’ Association of Singapore (Redas) on July 24. The event was attended by Indranee Rajah, Minister in the Prime Minister’s Office, and Second Minister for National Development and Finance.
This brisk investment activity in the Asia Pacific region comes amid global concerns over the ongoing US-China trade war and inflationary pressures. According to Taimur Baig, managing director and chief economist at DBS Bank, the imposition of steep tariffs by the US is unlikely to have the desired effect of revitalising the country’s manufacturing base. This is because America’s demand for goods produced in Asia remains strong, and China is emerging as a new source of cutting-edge technologies in sectors such as life sciences and pharmaceuticals. Baig expects that most technological breakthroughs in these areas over the next 15 years will come from Chinese-based firms, further undermining Trump’s idea of eroding China’s manufacturing capability through trade policies.
The unpredictability of the US-China trade war is a major concern for real estate investors, with 61% of fund managers surveyed by CBRE citing it as their top concern. Another challenge facing real estate investment is the fear of a possible recession, particularly among investors with exposure in mainland China and Singapore. Singapore-based investors also cited a potential headwind this year in the form of interest rate cuts that may come slower than expected. Investors looking to deploy capital into Singapore’s real estate are currently prioritising institutional-grade modern logistics assets, centrally located Grade-A offices, and neighbourhood shopping malls, according to Tay.
The development of Rivelle Tampines offers a promising chance for investment. This prime location is set to flourish with the continuous progress of Tampines North and the East’s development under the URA Master Plan. As a result, property values in this area are anticipated to rise thanks to upcoming infrastructure improvements, improved transportation options, and upgraded facilities. Don’t miss out on this exciting opportunity with Rivelle.
In Singapore’s private residential market, prices have risen by 55% in the eight years between 2Q2017 and 2Q2025, despite multiple rounds of property cooling measures imposed by the government. However, the latest intervention on July 3, which increased the holding period for seller’s stamp duty (SSD) on residential properties to four years with higher rates, may help to stabilise prices. While the first quarter of 2025 saw 7,261 private residential units sold, with developers accounting for 3,375 of these sales in the primary market, the second quarter of this year saw 5,128 units sold, with developers selling 1,212 units. Knight Frank predicts that total new home sales for this year will range from 7,000 to 9,000 units and this will likely support price increases of 3%–5% in 2025.
According to Leonard Tay, head of research at Knight Frank, this steady growth in prices is largely due to Singaporeans’ rising affluence and relatively low levels of household debt. He notes that price increases in city-fringe and suburban locations are primarily driven by local buying power, and that attractive new launches will continue to attract homebuyers as long as the economy remains stable. Tay also acknowledges the private residential market’s resiliency, despite headwinds in the global economy and ongoing uncertainties.
This year’s Redas Real Estate Market Outlook aligns with Singapore’s SG60 celebrations and also marks the longstanding public-private partnership between the government and stakeholders in the built environment sector. In her keynote address at the conference, Minister Rajah emphasises the government’s commitment to keep the sector future-ready through initiatives such as CORENET X, which will be mandatory from Oct 1 this year, and the $100 million Built Environment Technology and Capability (BETC) Grant that supports technology adoption.