Will Singapore continue to attract real estate investors amid global troubles?

While Republic’s openness makes it vulnerable to trade disruptions, there are silver linings for strategic investors, particularly if interest rates fall

[SINGAPORE] Through the past decade’s evolving global economic landscape and the Covid pandemic, Singapore remained resilient and vibrant in the world of real estate investment, attracting interest not just locally but also across borders.

Will this change after US President Donald Trump’s “Liberation Day” tariffs, which have roiled global stock markets and triggered concerns of an international trade war and a worldwide recession?

To be clear, Singapore has the lowest direct tariff rate of 10 per cent, but its trade openness and small domestic market make it vulnerable to trade outcomes in its key trading partners, most of which are directly affected by much higher tariffs. In the short term, there will be more market volatility and uncertainties.

The silver lining is that the fiscally sound Singapore government is prepared to support households and businesses if the situation deteriorates, and the Monetary Authority of Singapore stands ready to ease its monetary policy.

Global interest rates are also likely to drop in such a situation, which should benefit real estate investment. Hence, we believe real estate investors with a long-term view should stay invested in Singapore.

Singapore is third top cross-border investment destination in Apac

CBRE’s 2025 Asia Pacific Investor Intentions Survey found that, with further rate cuts forecast for this year, the majority of investors that transact in Singapore expect to purchase the same volume or more real estate over the course of 2025 compared with 2024.

Within the Asia-Pacific (Apac) region, the Republic ranked as the third most-attractive city for cross-border investment after Tokyo and Sydney, falling one place from 2024.

Thanks to Singapore’s macroeconomic stability, pro-business environment, and political-neutral stance, investors remain confident and interested in the country’s real estate assets for portfolio diversification and wealth preservation.

Amid the elevated interest rate environment, such investors will focus on core-plus to value-add strategies for higher yields.