Thought Leadership

Here are the key takeaways from the recent APREA Singapore Conference, where industry leaders and experts explored market trends, capital flows, and emerging opportunities in real assets. While the discussions acknowledged near-term uncertainties, the overarching sentiment focused on positioning for the next phase of growth. These highlights capture the core themes currently shaping investment strategies across the region.

KEY TAKEAWAYS

• The number of launches fell by 37.2% quarter-on-quarter (QoQ) to 2,632 units in Q4/2025, while new home sales declined by 10.6% QoQ to 2,940 units.
• After two consecutive quarters of growth, secondary sales eased by 8.7% QoQ to 3,759 units in Q4/2025.
• Total non-landed residential sales by Singaporeans fell 15.5% QoQ to 4,900 units, while sales to Singapore permanent residents (PRs) contracted moderately by 1.5% QoQ to 929 units.
• In Savills’ basket of luxury nonlanded private residential projects, prices continued to rise 0.5% QoQ to S$2,640 per sq ft in Q4/2025.
• Following the significant islandwide price resetting that began around mid-2022, it may take another one to two years before a broader, marketwide repricing reoccurs. In 2026, we are likely to see some repricing within the Rest of Central Region (RCR) and Core Central Region (CCR), as selected RCR launches are expected to see prices overlap into CCR territory. Overall, we project private residential prices to rise by about 3% in 2026.

KEY TAKEAWAYS

• Seasonal factors, including the year-end festive period and a slower inflow of expatriates and international students, contributed to a sharp 27.4% quarter-on-quarter decline in islandwide leasing contracts in Q4/2025. The pullback was broadbased across segments and regions.
• In tandem with the subdued leasing activity, islandwide rents for nonlanded private residential properties came under downward pressure, reflecting a sizeable stock of vacant leasable units.
• The modest year-on-year gains in 2025 provide a baseline for 2026. With new completions expected to remain steady at around 6,083 units—broadly in line with 2025’s relatively low supply—rents are likely to hold broadly firm in the first half of 2026, particularly if vacancy rates stay below 6.5%. Local and permanent resident demand for interim rental accommodation, mainly those awaiting completion of their private homes may help offset softer leasing demand from a lower inflow of expatriates. Overall, rents for non-landed private residential properties are forecast to remain broadly flat in 2026

KEY TAKEAWAYS

• Retail sales (excluding motor vehicles) rose in both October and November, while food and beverage (F&B) sales returned to growth in October.
• Although conditions improved in 2H/2025, softer demand in 1H/2025 weighed on overall performance, leaving islandwide retail vacancy broadly unchanged in Q4/2025.
• According to Savills’ basket of retail properties, average monthly rents in both the Orchard and Suburban areas registered modest year-on-year (YoY) growth.
• Supported by a tight supply pipeline and sustained tourism recovery, occupancy and rents—particularly in prime shopping districts—are expected to post modest gains of 1% to 2% this year. For the suburban malls, rents are still forecast to increase by the same amount as vacancies in prime malls remain low

KEY TAKEAWAYS

• Total leasing activity for factory and warehouse space increased modestly in 2025, with Savills’ basket of prime warehouse and logistics rents recording stronger growth. In contrast, rental growth for prime multiple-user factory space continued to moderate.
• Cautious investor sentiment persisted, weighing on strata industrial sales and leading to a decline in total industrial investment sales in 2025.
• Stronger demand for industrial assets with shorter remaining land tenures supported accelerated price growth for 30-year leasehold industrial properties within Savills’ basket. Conversely, price growth for freehold and 60-year leasehold industrial properties slowed.
• Rental growth in the business park segment strengthened slightly, while high-spec industrial space experienced subdued rental growth in 2025.
• Regional supply chains continue to be reshaped by recent US tariffs and by companies seeking cost advantages in neighbouring countries. Against this backdrop, rental growth for general warehousing space is expected to moderate in 2026, while rents for multiple-user factory space are projected to rise due to their cost-effectiveness.