Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Knight Frank views that sales event will “remain prudent and judicious” going into the 2nd half of the year. However, the 2H2025 GLS programme is anticipated to support sales. “The 10 brand-new GLS sites introduced in the 2H2025 Confirmed List are generally in good places, with most having a capacity of less than 600 new homes, well within the favoured parameters for developers,” Tan says.
Residential bargains dropped in 2Q2025, declining 52.3% q-o-q and 57% y-o-y to $1.8 billion. Most of residential sales came from the grant of 2 Government Land Sale (GLS) sites at Lentor Gardens and Shore Drive for $1 billion collectively. The quarter also saw the first residential cumulative sale of the year: the 24-unit, freehold River Valley Apartments, which sold for $56 million in February.
Realty investments in Singapore saw evaluated activity in 2Q2025, as industry faced volatility carried on by the US’s announcement of sweeping tolls and the unfolding Israel-Iran dispute. Research by Knight Franks shows that $5.8 billion in investment sales were recorded last quarter. This represents a q-o-q raise of only 1.1%, in addition to a 13.9% y-o-y decrease.
Hospitality asset 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, whilst Momentus Serviced Residences Novena was purchased by Weave Living, BlackRock and Lian Beng Group for $100 million.
On the other hand, industrial activity got in 2Q2025, with investment sales rising 560% q-o-q and 311% y-o-y to strike $1.6 billion. According to Knight Frank, numerous significant 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 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 offered to IOI Properties Group, CDL’s joint venture partner for South Beach. The agreement bumped up private sales to $4.6 billion last quarter, comprising the bulk of general investment sales at 79.2%.
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 cost $103.9 million in May.
Nonetheless, underlying interest in Singapore remains intact, says Galven Tan, CEO of Knight Frank Singapore. “Active capital stays eager on thematic markets, that are going to see more success with the narrowing of the bid-ask void.”
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 figure is 10.5% lower on a y-o-y basis.
Knight Frank has kept its investment sales projection for the complete year, running between $27 billion and $30 billion.
