Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Residential offers slipped in 2Q2025, declining 52.3% q-o-q and 57% y-o-y to $1.8 billion. The majority of residential sales came from the award of 2 Government Land Sale (GLS) locations at Lentor Gardens and Lakeside Drive for $1 billion jointly. The quarter even saw the very first residential cumulative sale of the year: the 24-unit, property River Valley Apartments, which cost $56 million in February.
On the other hand, industrial activity grabbed in 2Q2025, with investment sales rising 560% q-o-q and 311% y-o-y to hit $1.6 billion. According to Knight Frank, several remarkable 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.
Commercial arrangements even totalled around $1.8 billion last quarter, increasing 17.8% q-o-q on the back of the South Beach transaction. However, the figure is 10.5% lesser on a y-o-y basis.
Realty investments in Singapore observed assessed activity in 2Q2025, as industry faced volatility carried on by the US’s statement of sweeping tariffs and the unfolding Israel-Iran dispute. Research Study by Knight Franks shows that $5.8 billion in investment sales were recorded last quarter. This represents a q-o-q raise of just 1.1%, in addition to a 13.9% y-o-y decline.
Knight Frank sees that sales event will “remain prudent and judicious” entering into the second half of the year. Nevertheless, the 2H2025 GLS programme is expected to sustain sales. “The 10 new GLS sites introduced in the 2H2025 Confirmed List are generally in good locations, with a lot of having a potential of less than 600 new homes, well within the favoured parameters for developers,” Tan says.
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 deal bumped up private sales to $4.6 billion last quarter, comprising the bulk of total investment sales at 79.2%.
The industrial market also recorded 2 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.
Hospitality asset 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.
Knight Frank has actually kept its financial investment sales projection for the complete year, reaching between $27 billion and $30 billion.
Nevertheless, hiding interest in Singapore stays intact, says Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital stays keen on thematic fields, which will view more success with the narrowing of the bid-ask gap.”
