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 sold for $103.9 million in May.
Knight Frank has actually maintained its financial investment sales forecast for the complete year, running between $27 billion and $30 billion.
Realty investments in Singapore observed assessed activity in 2Q2025, as markets encountered volatility brought on by the US’s statement of capturing excises and the unraveling 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 grow of just 1.1%, in addition to a 13.9% y-o-y decrease.
Residential deals fell in 2Q2025, declining 52.3% q-o-q and 57% y-o-y to $1.8 billion. Most of residential sales originated from the grant of 2 Government Land Sale (GLS) sites at Lentor Gardens and Lakeside Drive for $1 billion jointly. The quarter also viewed the first residential cumulative sale of the year: the 24-unit, property River Valley Apartments, which cost $56 million in February.
Sales in 2Q2025 were bolstered 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, making up the bulk of general investment sales at 79.2%.
Hospitality asset sales climbed up 284% q-o-q to $585.8 million in 2Q2025. Volume 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 acquired by Weave Living, BlackRock and Lian Beng Group for $100 million.
Knight Frank observes that sales activity will “remain prudent and judicious” entering into the 2nd half 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 places, with a lot of having a potential of less than 600 new homes, well within the favoured parameters for developers,” Tan says.
Nonetheless, hiding interest in Singapore remains intact, claims Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital stays interested on thematic markets, that will view more success with the narrowing of the bid-ask space.”
On the other hand, industrial activity grabbed in 2Q2025, with financial investment sales surging 560% q-o-q and 311% y-o-y to strike $1.6 billion. According to Knight Frank, several 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.
Commercial transactions even yielded around $1.8 billion last quarter, ascending 17.8% q-o-q on the back of the South Beach proceeding. However, the figure is 10.5% lower on a y-o-y basis.
