Singapore real estate investment volume jumps 364% in Q1: CBRE

Buying and selling intentions both increased.

Real estate investment market posted a strong performance in the first quarter of 2026, even as investors across the Asia Pacific remained cautious over geopolitical tensions and interest rate uncertainty, according to CBRE’s Q1 2026 Asia Pacific Cap Rate Survey.

The report showed that Singapore recorded a 364% YoY increase in investment volume, the strongest growth among the markets covered in the survey. This was well above the Asia Pacific average of 18% YoY growth.

Despite the sharp rise in investment volume, sentiment among investors remained mixed. CBRE noted that both buying and selling intentions increased in Singapore.

Around 38% of respondents reported stronger buying intentions, whilst about 43% reported stronger selling intentions.

Singapore’s market continues to benefit from its position as a stable regional investment hub. The report said Singapore, along with Hong Kong SAR, had a notable share of respondents who viewed geopolitical developments as having a positive impact on investment sentiment, possibly because these markets are seen as safe havens for capital.

At the same time, the market is not insulated from broader risks. Across the Asia Pacific, geopolitical concerns were identified as the top challenge for real estate investment in the coming six months.

Interest rate movements and recession concerns were also cited as key risks. For Singapore, the report noted that respondents selected fear of recession as one of the economic concerns affecting sentiment.

Underlying occupier fundamentals remain supportive. Tenant demand and rental growth were viewed as among the most favourable factors for investment sentiment in Singapore, alongside Japan, India, and Australia.

Cap rate movements in Singapore also point to a relatively firm market. For Grade A offices in core locations, indicative cap rates stood at 3.25% to 3.80% as of March 2026, with rates having declined over the past six months and expected to decline further.

For core shopping malls, cap rates were at 4.35% to 5.00%, also showing a declining trend and downward outlook.

Institutional-grade logistics cap rates were at 5.50% to 6.50%, whilst urban hotels stood at 3.60% to 4.20% and multifamily/build-to-rent assets at 3.65% to 4.15%.

Sector preferences remain concentrated in high-quality assets. Grade A offices were identified as the most preferred sector for investment across the region, with Singapore among the markets showing interest in this segment.

Institutional-grade logistics also continued to attract enquiries, supported by demand from markets including Singapore, India, the Pacific, and Korea.