Compare the cap rates for private non-landed houses in OCR, RCR, and CCR in Singapore for 2023, 2024, and 2025.

Cap rates, or capitalization rates, in Singapore property refer to the expected annual return on real estate investment, based on income generated by the property. As of early 2025, cap rates in Singapore have shown stability across major commercial property sectors:

- Office properties: Cap rates typically range from 3.0% to 3.5%, among the lowest in the region, reflecting very high investor confidence for prime CBD assets.
- Retail properties: Cap rates are generally in the 4.3% to 4.8% range, indicating strong demand and relatively stable tenant profiles.
- Industrial properties: Cap rates are higher, around 5.25% to 6.25%, suggesting more risk and higher expected returns compared to office and retail sectors.

This stability in cap rates is underpinned by Singapore’s resilient economy, consistent tenant demand, limited supply of prime assets, and strong foreign investment. A stable cap rate environment benefits both existing and potential investors by reducing volatility and offering predictable returns.

Cap rate levels vary by property type, location, age of asset, and lease profile. Prime buildings in the CBD and established retail malls tend to command lower cap rates due to lower perceived risk and higher liquidity. Industrial assets, especially business parks and logistics facilities, typically yield higher cap rates.

For specific sectors or districts, EdgeProp Singapore provides up-to-date data and expert analysis on cap rate trends for office, retail, industrial and residential assets.