Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Realty investments in Singapore observed evaluated activity in 2Q2025, as industry encountered volatility taken on by the US’s news of capturing excises and the unfolding Israel-Iran conflict. Research Study by Knight Franks shows that $5.8 billion in investment sales were documented last quarter. This stands for a q-o-q increase of merely 1.1%, as well as a 13.9% y-o-y decrease.
Hospitality property sales climbed up 284% q-o-q to $585.8 million in 2Q2025. Quantity was supported by the revenue 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.
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 brought $103.9 million in May.
Nonetheless, hiding interest in Singapore remains intact, says Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital stays eager on thematic fields, that are going to 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% risk in office development South Beach at a $1.4 billion valuation. The stake was marketed to IOI Properties Group, CDL’s joint venture partner for South Beach. The deal hit up private sales to $4.6 billion last quarter, composing the bulk of general investment sales at 79.2%.
Knight Frank views that sales activity will “remain prudent and judicious” entering into the second fifty percent of the year. However, the 2H2025 GLS programme is anticipated to sustain sales. “The ten brand-new GLS sites introduced in the 2H2025 Confirmed List are generally in good areas, with most having a capacity of less than 600 new homes, well inside the favoured parameters for developers,” Tan says.
Residential offers dropped in 2Q2025, decreasing 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 Lakeside Drive for $1 billion collectively. The quarter additionally viewed the first residential cumulative sale of the year: the 24-unit, property River Valley Apartments, which sold for $56 million in February.
Commercial offers even totalled approximately $1.8 billion last quarter, going up 17.8% q-o-q on the back of the South Beach proceeding. However, the number is 10.5% lesser on a y-o-y basis.
On the other hand, industrial activity grabbed in 2Q2025, with investment sales surging 560% q-o-q and 311% y-o-y to strike $1.6 billion. According to Knight Frank, several noteworthy industrial transactions 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.
Knight Frank has kept its investment sales projection for the full year, reaching between $27 billion and $30 billion.
