Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
The industrial market also recorded 2 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.
Knight Frank views that sales activity will “remain prudent and judicious” entering into the 2nd half of the year. However, the 2H2025 GLS programme is expected to support sales. “The ten 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 within the favoured parameters for developers,” Tan says.
Real estate investments in Singapore saw measured activity in 2Q2025, as markets faced volatility taken on by the United States’s announcement of sweeping charges and the unfolding Israel-Iran problem. Research Study by Knight Franks shows that $5.8 billion in investment sales were reported last quarter. This represents a q-o-q raise of merely 1.1%, as well as a 13.9% y-o-y decrease.
Sales in 2Q2025 were strengthened 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 arrangement hit up private sales to $4.6 billion last quarter, making up the bulk of overall investment sales at 79.2%.
Nevertheless, underlying interest in Singapore remains intact, says Galven Tan, CEO of Knight Frank Singapore. “Active capital stays interested on thematic markets, that will see more success with the narrowing of the bid-ask space.”
On the other hand, industrial activity picked up in 2Q2025, with investment sales surging 560% q-o-q and 311% y-o-y to strike $1.6 billion. According to Knight Frank, a number of significant 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.
Residential offers slipped in 2Q2025, dropping 52.3% q-o-q and 57% y-o-y to $1.8 billion. The majority of residential sales originated from the award of two Government Land Sale (GLS) sites at Lentor Gardens and Shore Drive for $1 billion jointly. The quarter additionally viewed the very first residential cumulative 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. Quantity 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 acquired by Weave Living, BlackRock and Lian Beng Group for $100 million.
Commercial arrangements also amounted to approximately $1.8 billion last quarter, soaring 17.8% q-o-q on the back of the South Beach transaction. Nevertheless, the number is 10.5% lower on a y-o-y basis.
Knight Frank has actually preserved its investment sales forecast for the full year, running between $27 billion and $30 billion.
