Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Knight Frank observes that sales event will “remain prudent and judicious” going into the 2nd fifty percent of the year. However, the 2H2025 GLS programme is expected to support sales. “The 10 brand-new GLS sites introduced in the 2H2025 Confirmed List are generally in good places, with a lot of having a potential of less than 600 new homes, well inside the favoured parameters for developers,” Tan says.
On the other hand, 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, a number of significant industrial contracts 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.
Nonetheless, hiding interest in Singapore stays intact, says Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital stays interested on thematic markets, which will see more success with the narrowing of the bid-ask void.”
Residential bargains dropped in 2Q2025, dropping 52.3% q-o-q and 57% y-o-y to $1.8 billion. Most 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 even saw the very first residential collective sale of the year: the 24-unit, freehold River Valley Apartments, which sold for $56 million in February.
Hospitality asset sales climbed 284% q-o-q to $585.8 million in 2Q2025. Volume was upheld 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 bought by Weave Living, BlackRock and Lian Beng Group for $100 million.
Real estate investments in Singapore observed measured activity in 2Q2025, as industry encountered volatility taken on by the United States’s announcement of sweeping charges and the unraveling Israel-Iran dispute. Research by Knight Franks shows that $5.8 billion in investment sales were reported last quarter. This stands for a q-o-q increase of just 1.1%, in addition to a 13.9% y-o-y decrease.
Knight Frank has kept its financial investment sales forecast for the full year, reaching between $27 billion and $30 billion.
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, comprising the bulk of overall investment sales at 79.2%.
The industrial market in addition recorded two successful collective sales last quarter. Ching Shine Industrial Building brought $113.2 million in April, while MacPherson Industrial Complex sold for $103.9 million in May.
Commercial offers even amounted to 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% lower on a y-o-y basis.
