Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Real estate investments in Singapore saw assessed activity in 2Q2025, as industry took on volatility taken on by the United States’s announcement of sweeping charges and the unraveling Israel-Iran problem. Research by Knight Franks shows that $5.8 billion in investment sales were recorded last quarter. This represents a q-o-q increase of just 1.1%, as well as a 13.9% y-o-y decrease.
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 expected to support sales. “The ten new GLS sites presented in the 2H2025 Confirmed List are generally in good locations, with many having a capacity of less than 600 new homes, well within the favoured parameters for developers,” Tan says.
Residential deals slipped in 2Q2025, dropping 52.3% q-o-q and 57% y-o-y to $1.8 billion. Most of residential sales originated from the grant of two Government Land Sale (GLS) locations at Lentor Gardens and Shore Drive for $1 billion collectively. The quarter additionally saw the first residential cumulative sale of the year: the 24-unit, estate River Valley Apartments, which cost $56 million in February.
On the other hand, industrial activity grabbed in 2Q2025, with financial investment sales surging 560% q-o-q and 311% y-o-y to hit $1.6 billion. According to Knight Frank, numerous remarkable industrial deals closed 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.
Commercial arrangements even yielded approximately $1.8 billion last quarter, ascending 17.8% q-o-q on the back of the South Beach proceeding. However, the number is 10.5% lower on a y-o-y basis.
Knight Frank has actually preserved its investment sales projection for the complete year, running in between $27 billion and $30 billion.
The industrial market also recorded two successful collective sales last quarter. Ching Shine Industrial Building fetched $113.2 million in April, while MacPherson Industrial Complex brought $103.9 million in May.
Sales in 2Q2025 were bolstered by City Developments’ (CDL) sale of its 50.1% risk in office development South Beach at a $1.4 billion valuation. The stake was offered to IOI Properties Group, CDL’s joint venture partner for South Beach. The deal hit up private sales to $4.6 billion last quarter, making up the bulk of general investment sales at 79.2%.
Nonetheless, hiding interest in Singapore is still intact, claims Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital remains keen on thematic fields, that will see more success with the narrowing of the bid-ask gap.”
Hospitality property sales climbed up 284% q-o-q to $585.8 million in 2Q2025. Quantity was upheld 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, whilst Momentus Serviced Residences Novena was acquired by Weave Living, BlackRock and Lian Beng Group for $100 million.
