Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Knight Frank observes that sales activity will “remain prudent and judicious” entering into the 2nd fifty percent of the year. Nevertheless, the 2H2025 GLS programme is anticipated to sustain sales. “The 10 brand-new GLS sites presented in the 2H2025 Confirmed List are generally in good places, with most having a potential of less than 600 new homes, well within the favoured parameters for developers,” Tan says.
Nonetheless, hiding interest in Singapore is still intact, states Galven Tan, CEO of Knight Frank Singapore. “Active capital remains keen on thematic sectors, which will see more success with the narrowing of the bid-ask void.”
Residential deals fell in 2Q2025, dropping 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) locations at Lentor Gardens and Lakeside Drive for $1 billion jointly. The quarter even viewed the very first residential collective sale of the year: the 24-unit, estate River Valley Apartments, which cost $56 million in February.
Knight Frank has actually preserved its financial investment sales projection for the full year, running between $27 billion and $30 billion.
Commercial deals even amounted to approximately $1.8 billion last quarter, going up 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.
Real estate investments in Singapore saw evaluated activity in 2Q2025, as markets took on volatility taken on by the United States’s news of capturing tariffs and the unfolding Israel-Iran dispute. Research by Knight Franks shows that $5.8 billion in investment sales were reported last quarter. This represents a q-o-q increase of only 1.1%, in addition to a 13.9% y-o-y decline.
Sales in 2Q2025 were reinforced by City Developments’ (CDL) sale of its 50.1% stake 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 agreement 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 cost $103.9 million in May.
Hospitality property sales climbed 284% q-o-q to $585.8 million in 2Q2025. Quantity was upheld 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 bought by Weave Living, BlackRock and Lian Beng Group for $100 million.
In contrast, industrial activity picked up in 2Q2025, with financial investment sales rising 560% q-o-q and 311% y-o-y to strike $1.6 billion. According to Knight Frank, numerous notable industrial transactions 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.
