I have $2,000,000 cash to invest in commercial properties and am looking for options with good returns in 5 years.

With S$2,000,000 cash, you can target strata-titled commercial units like shophouses, small retail spaces, or suburban office units in Singapore, which often trade in this price range and offer potential for rental yields of 3-5% plus capital appreciation over 5 years.

Key Investment Options with Good 5-Year Return Potential

• Suburban Retail and Office Assets: These saw strong demand in 2025, with investments rising 28% YoY to US$4.2 billion in Q4, driven by REITs and institutions seeking stable income. Rents are holding steady or edging up due to limited new supply and tenant demand from tech/logistics sectors, positioning them for 2.2% GDP growth in 2026.
• Industrial/Logistics Units: Predictable cash flows from long-term leases make these defensive plays, with prime rents increasing mid-2025. Data centers and specialized facilities are hot due to AI demand, offering growth beyond cyclical rents.
• Shophouses or Mixed-Use Strata Units: Good for value-add strategies—renovate for higher rents or reposition for e-commerce/tourism recovery. Retail in suburbs gained momentum in 2025 from capital recycling.

Why Good Returns in 5 Years?

• Market Outlook: 2026 investment volumes expected to rise 5-10% APAC-wide, with Singapore top-ranked for stability, lower borrowing costs, and narrowing bid-ask spreads unlocking deals.
• Yield + Appreciation: Fundamentals like high occupancies, rental growth, and supply constraints support total returns via income (stable from quality tenants) and value uplift (e.g., office vacancy drops boosting pricing).
• Cash-Friendly: Avoids heavy financing needs; focus on all-cash buys under S$2M in areas like heartland malls or decentralised nodes.

Check EdgeProp Singapore for current listings, past transactions, and price trends in these segments to match your risk appetite—office/retail for growth, industrial for stability. Market remains selective, so prioritise prime locations with strong fundamentals.