Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Residential bargains dropped 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) locations at Lentor Gardens and Shore Drive for $1 billion collectively. The quarter additionally viewed the first residential collective sale of the year: the 24-unit, freehold River Valley Apartments, which cost $56 million in February.
Real estate investments in Singapore observed assessed activity in 2Q2025, as markets encountered volatility taken on by the United States’s announcement of capturing tolls and the unraveling Israel-Iran conflict. 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 only 1.1%, in addition to a 13.9% y-o-y decline.
The industrial market additionally recorded two successful collective sales last quarter. Ching Shine Industrial Building fetched $113.2 million in April, while MacPherson Industrial Complex cost $103.9 million in May.
Hospitality property sales climbed up 284% q-o-q to $585.8 million in 2Q2025. Volume 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, whilst Momentus Serviced Residences Novena was bought by Weave Living, BlackRock and Lian Beng Group for $100 million.
Commercial deals even totalled 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% lesser on a y-o-y basis.
Knight Frank views that sales activity will “remain prudent and judicious” going into the 2nd half of the year. However, the 2H2025 GLS programme is expected to support sales. “The ten brand-new GLS sites presented in the 2H2025 Confirmed List are generally in good locations, with most having a capacity of less than 600 new homes, well within the favoured parameters for developers,” Tan says.
Knight Frank has actually preserved its investment sales forecast for the full year, ranging between $27 billion and $30 billion.
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 hit up private sales to $4.6 billion last quarter, comprising the bulk of total investment sales at 79.2%.
Nevertheless, underlying interest in Singapore is still intact, states Galven Tan, CEO of Knight Frank Singapore. “Active capital stays eager on thematic sectors, which are going to see more success with the narrowing of the bid-ask void.”
In contrast, industrial activity picked up in 2Q2025, with financial investment sales rising 560% q-o-q and 311% y-o-y to hit $1.6 billion. According to Knight Frank, numerous noteworthy 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.
