Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
In contrast, industrial activity got 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, numerous notable industrial transactions 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.
Knight Frank observes that sales activity will “remain prudent and judicious” entering into the second fifty percent of the year. Nevertheless, the 2H2025 GLS programme is expected to sustain sales. “The 10 new GLS sites presented in the 2H2025 Confirmed List are generally in good locations, with most having a capacity of less than 600 new homes, well throughout the favoured parameters for developers,” Tan says.
Nevertheless, hiding interest in Singapore is still intact, claims Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital stays keen on thematic sectors, which will see more success with the narrowing of the bid-ask space.”
The industrial market additionally recorded two successful collective sales last quarter. Ching Shine Industrial Building fetched $113.2 million in April, while MacPherson Industrial Complex sold for $103.9 million in May.
Sales in 2Q2025 were strengthened 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 bumped up private sales to $4.6 billion last quarter, making up the bulk of general investment sales at 79.2%.
The Arcady @ Boon Keng Singapore
Residential bargains fell in 2Q2025, declining 52.3% q-o-q and 57% y-o-y to $1.8 billion. The majority 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 even saw the very first residential collective sale of the year: the 24-unit, freehold River Valley Apartments, which sold for $56 million in February.
Knight Frank has kept its investment sales projection for the complete year, running in between $27 billion and $30 billion.
Commercial deals also totalled approximately $1.8 billion last quarter, soaring 17.8% q-o-q on the back of the South Beach transaction. However, the number is 10.5% lower on a y-o-y basis.
Realty investments in Singapore observed assessed activity in 2Q2025, as markets took on volatility taken on by the US’s announcement of capturing excises and the unraveling Israel-Iran dispute. Research by Knight Franks shows that $5.8 billion in investment sales were reported last quarter. This stands for a q-o-q rise of merely 1.1%, as well as a 13.9% y-o-y decline.
Hospitality asset sales climbed 284% q-o-q to $585.8 million in 2Q2025. Volume 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 purchased by Weave Living, BlackRock and Lian Beng Group for $100 million.
