Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
The industrial market additionally recorded 2 successful collective sales last quarter. Ching Shine Industrial Building brought $113.2 million in April, while MacPherson Industrial Complex brought $103.9 million in May.
Nonetheless, underlying interest in Singapore remains intact, states Galven Tan, CEO of Knight Frank Singapore. “Active capital remains eager on thematic sectors, which will see more success with the narrowing of the bid-ask gap.”
In contrast, industrial activity grabbed 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 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.
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 sold to IOI Properties Group, CDL’s joint venture partner for South Beach. The agreement hit up private sales to $4.6 billion last quarter, composing the bulk of general investment sales at 79.2%.
Commercial offers even amounted to around $1.8 billion last quarter, increasing 17.8% q-o-q on the back of the South Beach transaction. Nevertheless, the figure is 10.5% lower on a y-o-y basis.
Residential offers slipped 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 Shore Drive for $1 billion jointly. The quarter even saw the very first residential cumulative sale of the year: the 24-unit, estate River Valley Apartments, which sold for $56 million in February.
Knight Frank views that sales event will “remain prudent and judicious” entering into the 2nd half of the year. Nevertheless, 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 a lot of having a potential of less than 600 new homes, well within the favoured parameters for developers,” Tan says.
Hospitality asset sales climbed 284% q-o-q to $585.8 million in 2Q2025. Quantity was sustained 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 acquired by Weave Living, BlackRock and Lian Beng Group for $100 million.
Knight Frank has actually maintained its investment sales projection for the complete year, ranging between $27 billion and $30 billion.
Realty investments in Singapore saw measured activity in 2Q2025, as industry encountered volatility taken on by the US’s announcement of capturing tolls and the unfolding 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 only 1.1%, in addition to a 13.9% y-o-y decline.
