.jpg?MB_xxVTWJxqHqb_sz9vakw_pdsFjvCXA&itok=ExwOW8cE "Knight Frank has maintained its investment sales forecast for the full year, ranging between $27 billion and $30 billion (Picture: Albert Chua/The Edge Singapore.")
Real estate investments in Singapore saw measured activity in 2Q2025, as markets faced volatility brought on by the US’s announcement of sweeping tariffs and the unfolding Israel-Iran conflict. 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 decline.
Nonetheless, underlying interest in Singapore remains intact, says Galven Tan, CEO of Knight Frank Singapore. “Active capital remains keen on thematic sectors, which will see more success with the narrowing of the bid-ask gap.”
Sales in 2Q2025 were bolstered by City Developments’ (CDL) sale of its 50.1% stake 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, making up the bulk of overall investment sales at 79.2%.
Residential deals fell in 2Q2025, declining 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 Lakeside Drive for $1 billion collectively. The quarter also saw the first residential collective sale of the year: the 24-unit, freehold River Valley Apartments, which sold for $56 million in February.
Commercial deals also totalled around $1.8 billion last quarter, rising 17.8% q-o-q on the back of the South Beach transaction. However, the figure is 10.5% lower on a y-o-y basis.
In contrast, industrial activity picked up in 2Q2025, with investment sales surging 560% q-o-q and 311% y-o-y to hit $1.6 billion. According to Knight Frank, several notable 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.
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 sold for $103.9 million in May.
Hospitality asset sales climbed 284% q-o-q to $585.8 million in 2Q2025. Volume 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 purchased by Weave Living, BlackRock and Lian Beng Group for $100 million.
Knight Frank views that sales activity will “remain prudent and judicious” going into the second half of the year. However, the 2H2025 GLS programme is expected to support sales. “The ten new GLS sites introduced in the 2H2025 Confirmed List are generally in good locations, with most having a potential of less than 600 new homes, well within the favoured parameters for developers,” Tan says.
Knight Frank has maintained its investment sales forecast for the full year, ranging between $27 billion and $30 billion.
