Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Real estate investments in Singapore saw evaluated activity in 2Q2025, as industry encountered volatility taken on by the US’s announcement of capturing excises and the unraveling Israel-Iran dispute. Research by Knight Franks shows that $5.8 billion in investment sales were documented last quarter. This stands for a q-o-q grow of only 1.1%, in addition to a 13.9% y-o-y decrease.
Commercial offers even amounted to around $1.8 billion last quarter, going up 17.8% q-o-q on the back of the South Beach proceeding. Nevertheless, the figure is 10.5% lesser on a y-o-y basis.
The industrial market also recorded 2 successful collective sales last quarter. Ching Shine Industrial Building fetched $113.2 million in April, while MacPherson Industrial Complex cost $103.9 million in May.
Hospitality property sales climbed up 284% q-o-q to $585.8 million in 2Q2025. Quantity was supported by the sale of Citadines Raffles Place by CapitaLand Integrated Commercial Trust, CapitaLand Development and Mitsubishi Estate Asia for $280 million. In addition, boutique hotel 21 Carpenter was sold by 8M Real Estate for $100 million, while Momentus Serviced Residences Novena was acquired by Weave Living, BlackRock and Lian Beng Group for $100 million.
Sales in 2Q2025 were reinforced by City Developments’ (CDL) sale of its 50.1% risk in office development South Beach at a $1.4 billion valuation. The stake was sold to IOI Properties Group, CDL’s joint venture partner for South Beach. The deal bumped up private sales to $4.6 billion last quarter, comprising the bulk of total investment sales at 79.2%.
Knight Frank sees that sales event will “remain prudent and judicious” going into the 2nd fifty percent of the year. Nevertheless, the 2H2025 GLS programme is anticipated to support sales. “The ten new GLS sites presented in the 2H2025 Confirmed List are generally in good places, with most having a capacity of less than 600 new homes, well inside the favoured parameters for developers,” Tan says.
Residential offers fell in 2Q2025, decreasing 52.3% q-o-q and 57% y-o-y to $1.8 billion. The majority of residential sales came from the award of two Government Land Sale (GLS) sites at Lentor Gardens and Shore Drive for $1 billion collectively. The quarter even saw the first residential cumulative sale of the year: the 24-unit, freehold River Valley Apartments, which cost $56 million in February.
Knight Frank has actually preserved its investment sales projection for the full year, running in between $27 billion and $30 billion.
On the other hand, industrial activity picked up in 2Q2025, with financial investment sales rising 560% q-o-q and 311% y-o-y to hit $1.6 billion. According to Knight Frank, several noteworthy industrial deals closed up in May, including the sale of 9 Tai Seng Drive for $455.2 million, the sale of The Strategy business park in Jurong for $280 million, and the sale of 5 Science Park Drive for $245 million.
Nevertheless, hiding interest in Singapore stays intact, says Galven Tan, CEO of Knight Frank Singapore. “Active capital remains interested on thematic markets, which will see more success with the narrowing of the bid-ask space.”
