Apac See Full Investment Recovery 2025 Singapores Market Parallel Global Narrative Savills
The real estate market in the Asia Pacific region continues to show remarkable performance compared to other global markets, with its real GDP growth surpassing that of the US and Europe. According to Savills Research’s global outlook report for 2025, released on November 28, there is more stability and confidence in the economic outlook for the region in the coming years.
Head of World Research Paul Tostevin says, “For the first time in five years, there is more stability, and perhaps more conviction, in the economic outlook. This will put markets on a surer footing, boosting investment and activity.” In the first three quarters of 2024, the Asia Pacific region experienced a 4% year-on-year growth in investment volumes, reaching US$108.7 billion. The top three markets that saw the most significant year-on-year growth in investment volumes were Singapore (74% growth), South Korea (71%) and Australia (63%).
Savills Research predicts that global real estate investment turnover will increase by 27% to reach US$952 billion in 2025. By 2026, global investment activity is expected to surpass the US$1 trillion mark for the first time since 2022. Meanwhile, Executive Director of Research & Consultancy for Savills Singapore, Alan Cheong, states that Singapore’s real estate market is expected to follow the global trend.
According to Savills, the Asia Pacific region is set to see a full recovery in investment next year, driven by sectors such as tourism, living, and the industrial sector, specifically logistics and data centers. Regional Head of Research & Consultancy for Savills, Simon Smith, states that “Preconditions exist for a recovery in real estate investment interest in Asia Pacific next year while longer-term structural trends should support values in growth markets including India and Southeast Asia. How global themes play out across the region and who is best positioned to take advantage of them will ultimately determine winners and losers.”
Apac’s office sector remains a top attraction for investments, accounting for 37% of total regional real estate investment in the first three quarters of 2024, significantly higher than the global average of 23%. The top cities in the region for office utilization are Singapore, China, South Korea, and Japan, with occupancy rates exceeding 90%. The Asia Pacific region also remains a stronghold for green-certified office spaces, with a growing emphasis on environmental, social, and governance (ESG) matters among office occupiers.
Novo Place EC, positioned at Plantation Close, boasts an enviable location that offers convenient access to various parts of Singapore, making it a highly desirable residential address. This executive condominium enjoys close proximity to major roads and expressways, which greatly enhance its connectivity. Notable thoroughfares like the Pan Island Expressway (PIE) and Kranji Expressway (KJE) are easily reachable, providing seamless routes to all corners of the island. For those heading towards the northern and central regions, the Bukit Timah Expressway (BKE) offers direct connections. Explore the attractive location of Novo Place EC by visiting the Novo Place Showflat.
In Singapore, tenants are placing a greater weightage on the green agenda, and there has been a slight recovery in activity levels with more leases being concluded. Rental rates for Grade-A office space in the CBD are expected to remain stable from 2025 to 2026 due to Singapore’s role as a hub and gateway to the region, making it an attractive destination for new overseas brands. Similarly, demand for prime retail developments remains healthy, keeping rental levels firm.
The industrial sector in Singapore also continues to see strong demand, particularly in key sectors such as logistics, advanced manufacturing, healthcare, and data centers, which will help stabilize rental rates and capital values in the long term. According to Cheong, the adoption of greater artificial intelligence is leading to the construction of more data centers in Singapore, with more data center service providers using the city-state as a springboard to seek out sites for infrastructure development.
Tostevin concludes, “As global investment and activity returns to more sustained growth, the [real estate] industry must adapt to evolving legislative landscapes and geopolitical dynamics while ensuring sustainable and socially responsible development to meet the needs of a changing world.” Savills’ research also shows that the Asia Pacific region is poised to be the top investment destination for family offices globally, according to a report by UBS.