Singapore CRE investment jumps 179% in Q1: CBRE

Singapore recorded the largest quarterly increase in commercial real estate investment volume in Asia Pacific in Q1 2026, with transactions rising 179% QoQ, according to CBRE.

The increase was supported by the low interest rate environment and major transactions, including Hongkong Land’s debut core fund acquisition of prime Singapore CBD assets such as Asia Square Tower 1 and Marina Bay Financial Centre Towers 1 and 2 for US$6.5b.

CBRE said Singapore’s economy also outperformed expectations, with GDP expanding 4.6% YoY in Q1, supported by solid export growth.

Market rates continued to trend lower, with Singapore’s 3M SORA at 1.05% as of May 6, down 203 basis points from end-2024 and 14 basis points from Q42025.

In the office sector, Singapore Grade A vacancy fell to a record-low 3.3%, supported by steady flight-to-quality demand from banking and financial occupiers. AI occupiers are also increasingly moving from flexible space to self-managed offices as the business segment matures.

Singapore office rents rose modestly during the quarter, in line with broader regional office rental growth.

Retail conditions also remained resilient. CBRE said Singapore retail sales stayed positive in Q1, excluding motor vehicles, whilst vacancy in prime retail areas remained tight as retailer demand focused on core locations. Tight availability supported further growth in retail rentals.

In logistics, Singapore's demand was driven by third-party logistics providers and engineering firms supporting the semiconductor sector, reinforcing the need for newer, higher-specification facilities. Prime logistics vacancy tightened to 4.3% amid an absence of new completions.

Yields also tightened in Singapore, with office and retail yields compressing by around 10 basis points QoQ each, in line with the decline in the city’s lending rate.

Across Asia Pacific, commercial real estate investment volume fell 9% QoQ to US$46.2b, pulling back from the previous quarter’s record high, but remained 18% higher YoY. CBRE said geopolitical tensions and a less accommodative interest rate environment could weigh on activity, although favourable occupier market fundamentals should support investor confidence.