Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Residential deals fell in 2Q2025, decreasing 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 first residential collective sale of the year: the 24-unit, estate River Valley Apartments, which sold for $56 million in February.
Hospitality property 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 purchased by Weave Living, BlackRock and Lian Beng Group for $100 million.
Commercial arrangements even amounted to around $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.
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 marketed 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 general investment sales at 79.2%.
The industrial market in addition recorded 2 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.
Knight Frank has preserved its investment sales projection for the complete year, running between $27 billion and $30 billion.
On the other hand, industrial activity grabbed in 2Q2025, with investment sales rising 560% q-o-q and 311% y-o-y to hit $1.6 billion. According to Knight Frank, several noteworthy 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.
Real estate investments in Singapore observed evaluated activity in 2Q2025, as markets faced volatility brought on by the United States’s news of sweeping excises and the unraveling Israel-Iran problem. Research Study by Knight Franks shows that $5.8 billion in investment sales were documented last quarter. This stands for a q-o-q grow of just 1.1%, along with a 13.9% y-o-y decline.
Knight Frank views that sales activity will “remain prudent and judicious” entering into the second fifty percent of the year. However, the 2H2025 GLS programme is anticipated to sustain sales. “The ten new GLS sites introduced in the 2H2025 Confirmed List are generally in good locations, with a lot of having a potential of less than 600 new homes, well inside the favoured parameters for developers,” Tan says.
Nevertheless, underlying interest in Singapore remains intact, claims Galven Tan, CEO of Knight Frank Singapore. “Active capital remains eager on thematic sectors, that are going to view more success with the narrowing of the bid-ask gap.”
