Singapore Takes the Lead in APAC Logistics and Real Estate Growth
Singapore is driving the recovery of logistics and commercial real estate in the Asia Pacific region, with a focus on prime retail, industrial, and hotel assets.
LogisticsReal EstateSingaporeApacInvestmentReal EstateSep 11, 2025
Singapore recorded the highest regional activity in logistics, leading in both investor inquiries and site visits. The recovery is being driven by increased demand from manufacturers and e-commerce players, which are boosting requirements for warehousing and distribution services. In the commercial real estate sector, Singapore also emerged as a top investment destination, attracting private capital despite subdued office rental growth.
Key Highlights:
- Singapore leads APAC logistics and real estate growth in 2025
- Investor focus shifts to prime retail, industrial, and hotel assets
- APAC real estate transactions to grow 5–10 percent YoY this year
Investors are shifting toward prime retail assets, industrial properties, and hotel assets, buoyed by tourism recovery and attractive valuations. The report highlights that domestic capital will continue to dominate most markets, but offshore investment is expected to rise, supported by improved investor confidence and potentially lower borrowing costs.
For 2025, APAC’s commercial real estate transaction volume is projected to grow by 5–10 percent year-on-year, with Singapore, Korea, Australia, and Hong Kong driving the majority of deals. Investor interest remains strong in Japan and India, further supporting growth momentum.
Overall, Singapore is expected to remain at the forefront of APAC’s logistics and real estate expansion, playing a pivotal role in attracting both domestic and international capital into key asset classes.
Frequently Asked Questions
Why is Singapore leading in logistics and real estate growth in APAC?
Singapore is leading due to increased demand from manufacturers and e-commerce players, which are boosting requirements for warehousing and distribution services. Additionally, it is a top investment destination for commercial real estate, attracting private capital.
What are the key sectors attracting investment in Singapore?
The key sectors attracting investment in Singapore include prime retail assets, industrial properties, and hotel assets. These sectors are benefiting from tourism recovery and attractive valuations.
How is the APAC commercial real estate market expected to perform in 2025?
APAC’s commercial real estate transaction volume is projected to grow by 5–10 percent year-on-year in 2025, driven by strong investor interest in Singapore, Korea, Australia, and Hong Kong.
What factors are driving the increase in offshore investment in APAC real estate?
Improved investor confidence and potentially lower borrowing costs are driving the increase in offshore investment in APAC real estate, particularly in key markets like Singapore, Japan, and India.
What role does Singapore play in the APAC logistics and real estate market?
Singapore plays a pivotal role in attracting both domestic and international capital into key asset classes, making it a leader in the APAC logistics and real estate market. It is a top destination for logistics activities and commercial real estate investments.
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