Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
The industrial market in addition recorded two successful collective sales last quarter. Ching Shine Industrial Building fetched $113.2 million in April, while MacPherson Industrial Complex brought $103.9 million in May.
On the other hand, industrial activity grabbed 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 deals 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.
Nevertheless, underlying interest in Singapore remains intact, says Galven Tan, CEO of Knight Frank Singapore. “Active capital stays eager on thematic fields, that are going to view more success with the narrowing of the bid-ask void.”
Knight Frank sees that sales event will “remain prudent and judicious” going into the 2nd half of the year. However, the 2H2025 GLS programme is expected to support sales. “The 10 brand-new GLS sites introduced in the 2H2025 Confirmed List are generally in good locations, with most having a potential of less than 600 new homes, well inside the favoured parameters for developers,” Tan says.
Knight Frank has maintained its financial investment sales projection for the complete year, running between $27 billion and $30 billion.
Realty investments in Singapore observed measured activity in 2Q2025, as industry faced volatility taken on by the United States’s statement of capturing tariffs 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 increase of just 1.1%, along with a 13.9% y-o-y decline.
Commercial deals also 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.
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 agreement hit up private sales to $4.6 billion last quarter, comprising the bulk of total investment sales at 79.2%.
Hospitality asset sales climbed 284% q-o-q to $585.8 million in 2Q2025. Quantity was sustained by the revenue 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.
Residential deals slipped in 2Q2025, decreasing 52.3% q-o-q and 57% y-o-y to $1.8 billion. The majority of residential sales came from the grant of two Government Land Sale (GLS) locations 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.
