Southeast Asia Outlook 2025: Long-Term Growth Prospects Remain Intact

Note: At the time of writing, global policy uncertainty - particularly due to recent U.S. tariff measures- remains high. As the situation continues to evolve, the long-term impacts are unclear, and the findings in this report may be subject to change.

Now in its third edition, our latest Southeast Asia (SEA) Outlook highlights the region’s economic prospects in 2025. The report also offers occupiers and investors insights into key SEA markets, including Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.

While the risk of a global economic slowdown may temper SEA’s short-term growth, the region’s demonstrated resilience and strong long-term fundamentals will continue to position it among the world’s fastest-growing economies. SEA remains one of the fastest-growing regions globally, with gross domestic product (GDP) poised to rise by 4.8% year-over-year (YOY) in 2024, outpacing the 3.9% growth recorded in 2023.

Singapore’s Economic Overview

Singapore's economy is poised for steady growth, with a projected GDP growth rate of 0-2% in 2025. Key economic indicators remain healthy, including low unemployment, a recovery in tourism, lower inflation, and interest rates. The economy is supported by continued expansion in manufacturing and trade-related services, driven by strong demand for semiconductor chips and digital solutions or services.

Key Takeaways for Occupiers in Singapore

• Office Sector: Tighter supply conditions may be met with increasing office demand on the back of gradually declining interest rates and steady global economic growth.
• Retail Sector: While bulk of the new retail supply is expected to come from the suburban market, retailer demand for suburban retail space remains healthy, with new suburban malls experiencing high occupancy rates.
• Prime Logistics Sector: The above-trend rental growth for prime logistics in recent years is expected to slow down as more supply enters the market.
• Residential Sector: Steady economic growth coupled with a low level of new completions would support a return to growth for residential rents.