Singapore’s strata commercial market showed mixed performance in 2025, reflecting diverging trends across asset classes. Strata office transaction values declined for the fourth consecutive year to approximately $1.13 billion, although deal volumes edged higher as buyers continued to pursue smaller units and owner-occupier purchases. Demand remains strongest for scarce Grade A strata offices, while renewed enbloc interest has supported activity in older office buildings. At the same time, investor interest is emerging in decentralized office locations such as Jurong Lake District and Woodlands, driven by future infrastructure and economic growth expectations.
Meanwhile, strata retail transactions rebounded sharply, with total transaction value rising 38% year-on-year as more owners divested assets amid ongoing structural challenges facing retail malls. These exits have created opportunities for investors seeking attractive pricing and yield potential. In contrast, landed shophouse transaction values fell to their lowest level in a decade as buyers remain cautious amid rising construction and redevelopment costs, even as demand remains supported by the scarcity and wealth-preservation appeal of these assets. Heading into 2026, investor appetite is expected to remain intact, though opportunities and motivations will continue to vary across asset classes.
Key Takeaways:
- Major new supply from 2027 onward is expected to gradually ease market pressure.
- Strata office transaction values declined, though deal volumes rose as smaller-ticket deals and owner-occupier demand persisted.
- Grade A strata offices remain highly sought after, while enbloc interest supports activity in older buildings.
- Strata retail transactions rebounded strongly as owner divestments created more buying opportunities.
- Retail assets continue to face structural headwinds, prompting selective owner exits.
- Landed shophouse transaction values fell to a decade low as buyers remain cautious despite limited supply.
- Investor demand across commercial assets remains intact, though acquisitions remain highly selective.
