Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
The industrial market also recorded 2 successful collective sales last quarter. Ching Shine Industrial Building brought $113.2 million in April, while MacPherson Industrial Complex brought $103.9 million in May.
Nonetheless, hiding interest in Singapore remains intact, claims Galven Tan, CEO of Knight Frank Singapore. “Active capital remains keen on thematic sectors, which will view more success with the narrowing of the bid-ask space.”
Commercial deals also amounted to approximately $1.8 billion last quarter, rising 17.8% q-o-q on the back of the South Beach transaction. Nevertheless, the number is 10.5% lesser on a y-o-y basis.
Knight Frank has actually kept its investment sales forecast for the full year, running between $27 billion and $30 billion.
Hospitality property sales climbed 284% q-o-q to $585.8 million in 2Q2025. Quantity was supported 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.
Residential deals fell in 2Q2025, dropping 52.3% q-o-q and 57% y-o-y to $1.8 billion. The majority of residential sales came from the award of two Government Land Sale (GLS) locations at Lentor Gardens and Lakeside Drive for $1 billion collectively. The quarter additionally viewed the very first residential collective sale of the year: the 24-unit, property River Valley Apartments, which sold for $56 million in February.
Realty investments in Singapore observed evaluated activity in 2Q2025, as markets took on volatility taken on by the US’s statement of capturing charges and the unraveling Israel-Iran conflict. Research by Knight Franks shows that $5.8 billion in investment sales were recorded last quarter. This stands for a q-o-q raise of merely 1.1%, along with a 13.9% y-o-y decline.
On the other hand, industrial activity picked up 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 remarkable 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% 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 arrangement hit up private sales to $4.6 billion last quarter, composing the bulk of total investment sales at 79.2%.
Knight Frank observes 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 support sales. “The 10 new GLS sites presented in the 2H2025 Confirmed List are generally in good places, with many having a capacity of less than 600 new homes, well within the favoured parameters for developers,” Tan says.
