Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Residential bargains dropped in 2Q2025, declining 52.3% q-o-q and 57% y-o-y to $1.8 billion. Most of residential sales originated from the award of 2 Government Land Sale (GLS) sites at Lentor Gardens and Shore Drive for $1 billion jointly. The quarter even saw the very first residential collective sale of the year: the 24-unit, property River Valley Apartments, which sold for $56 million in February.
Commercial deals also amounted to approximately $1.8 billion last quarter, ascending 17.8% q-o-q on the back of the South Beach transaction. However, the number is 10.5% lesser on a y-o-y basis.
Knight Frank has kept its financial investment sales projection for the full year, running between $27 billion and $30 billion.
Nevertheless, hiding interest in Singapore stays intact, claims Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital stays keen on thematic sectors, which will see more success with the narrowing of the bid-ask gap.”
Realty investments in Singapore saw evaluated activity in 2Q2025, as industry encountered volatility taken on by the United States’s announcement of capturing excises and the unfolding Israel-Iran conflict. 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 just 1.1%, as well as a 13.9% y-o-y decrease.
Knight Frank observes that sales event will “remain prudent and judicious” going into the second fifty percent of the year. Nevertheless, the 2H2025 GLS programme is expected to sustain sales. “The 10 brand-new GLS sites introduced in the 2H2025 Confirmed List are generally in good areas, with most having a potential of less than 600 new homes, well inside the favoured parameters for developers,” Tan says.
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 sold for $103.9 million in May.
In contrast, industrial activity got in 2Q2025, with financial investment sales surging 560% q-o-q and 311% y-o-y to hit $1.6 billion. According to Knight Frank, a number of remarkable industrial deals 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.
Hospitality investment sales climbed 284% q-o-q to $585.8 million in 2Q2025. Volume 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, whilst Momentus Serviced Residences Novena was bought by Weave Living, BlackRock and Lian Beng Group for $100 million.
Sales in 2Q2025 were reinforced 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 bumped up private sales to $4.6 billion last quarter, composing the bulk of total investment sales at 79.2%.
