Strong growth, lower rates to lift property investment, CBRE says

Office and mixed-use assets led the pickup across the market.

Singapore’s property investment activity has picked up over the past 12 months and is projected to remain healthy into 2027, according to CBRE’s market report.

The report attributed the pickup in investment activity to strong economic growth, with the gross domestic product expanding 5% in 2025 and projected to grow 4.5% to 5% in 2026.

Lower interest rates also supported investment activity, falling 200 basis points in 2025 before stabilising in 2026.

Office and mixed-use assets led the growth, whilst investor interest in retail properties has expanded beyond suburban malls to prime shopping centres and supermarket portfolios.

The report showed investors are also showing interest in co-living and purpose-built worker accommodation.

The co-living sector has consolidated around a smaller number of larger operators, two of which have listed on the Singapore Exchange.

A new Urban Redevelopment Authority framework for long-stay serviced apartments could also support the development of institutionally investable rental housing over the longer term, CBRE added.

Meanwhile, purpose-built worker accommodation is attracting investors due to its relatively resilient demand and attractive yields.

Investment activity is expected to remain healthy into 2027, supported by substantial unallocated capital targeting Singapore, CBRE said.