Even as 2025 approaches with promises of modest relief on interest rates, Singapore’s investment community is edging into the new year with measured caution.
Geopolitical tensions, ongoing US-China trade disputes, and unpredictable tariff policies are muddling cross-border visibility, while supply chain hiccups still pop up at inconvenient moments.
Global growth looks uneven, with developed markets steadier than many emerging peers, a spread that complicates asset pricing and timing.
Yes, the market expects moderate Fed cuts, but investors remain conscious that rates will likely stay higher than the last decade’s lows.
Net buying intentions in Singapore have risen, though the improvement is modest, signaling interest without overexuberance.
Participants gravitate toward core and core-plus real estate, especially offices and data centres, viewing them as dependable anchors in choppy waters.
Industrial assets continue to appeal to core profiles due to resilient supply-demand dynamics, while healthcare properties and green, ESG-compliant buildings draw steady demand. Regionally, 56% of investors plan to acquire or develop green buildings, reinforcing this tilt toward sustainability.
Living sectors like retirement and student housing attract attention, but investable stock remains limited, which keeps pricing tight.
Strategy is tilting toward capital preservation and resilience, with more rigorous due diligence, tighter expense controls, and efficiency initiatives to offset operational cost increases.
Value-added approaches are gaining share over pure opportunistic plays, as underwriting builds in conservative exit assumptions and slower leasing.
Geographic diversification is broadening across stable and resilient markets, with Singapore itself ranking highly for cross-border interest.
Technology is increasingly central to this discipline.
A large majority of local firms report holistic data strategies, with over half at advanced stages, far outpacing a roughly one-third global average.
Many plan to increase tech spending in 2025, aiming for faster decisions, sharper portfolio optimization, and clean regulatory compliance.
Advanced analytics, automation, and digital transformation are viewed as essential tools for charting course through volatility, and frankly, for sleeping better at night. Reflecting this momentum, 87% of Singaporean institutions recognize AI’s potential—especially GenAI models—and are moving early to integrate it across private-market workflows.
Capital flows and fundraising appear to be democratizing, with both institutional and retail participation growing through semi-liquid private market funds, ETFs, and flexible platforms.
Alternative asset classes are being explored to balance traditional exposures, yet the overarching tone remains careful, patient, and data-driven.
Despite concerns, Singapore’s economy remains fundamentally strong with a projected 2.6% growth forecast for 2025, providing some assurance to cautious investors.
