Singapore Leads APAC Logistics and Real Estate Growth

Demand for logistics services in Asia Pacific (APAC) is expected to gradually recover in 2025, with Singapore taking the lead, according to the inaugural Vistra Fund Solutions Friction Index 2025 published by Vistra and the Asia Pacific Real Assets Association.

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.

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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.