Real estate investment volume drops 30.6% YoY to $20.8b in 2023

Excluding GLS deals, residential, office, and industrial sectors supported investment volume.

Singapore saw $20.8b in real estate investments in 2023, translating to a 30.6% drop from 2022.

Excluding the Government Land Sales (GLS) tenders, residential (27.5%), office (18.1%) and industrial (17.0%) sectors supported investment volume this year.

Data from Colliers showed that GLS tenders accounted for 48.2% or $2.9b of the total volume in 4Q23 and 37.2% or $37.2b of the total for the whole year.

In 2024, Colliers expects investment sales to be 5% to 15% higher than 2023, at $22b-$24b.

“For 2024, there is unlikely to be a strong rebound as deal-making will still be constrained by weaker rental growth, the higher interest rate environment and tighter liquidity. However, real estate investments in Singapore will retain its allure with capital inflows attracted to its haven status, especially from private wealth,” Colliers said.