Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Commercial offers even yielded around $1.8 billion last quarter, going up 17.8% q-o-q on the back of the South Beach transaction. However, the number is 10.5% lesser on a y-o-y basis.
Hospitality investment 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, while Momentus Serviced Residences Novena was bought by Weave Living, BlackRock and Lian Beng Group for $100 million.
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.
In contrast, industrial activity picked up in 2Q2025, with investment sales surging 560% q-o-q and 311% y-o-y to strike $1.6 billion. According to Knight Frank, numerous remarkable industrial offers 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.
Nevertheless, underlying interest in Singapore is still intact, claims Galven Tan, CEO of Knight Frank Singapore. “Active capital stays interested on thematic fields, that will see more success with the narrowing of the bid-ask gap.”
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 offered to IOI Properties Group, CDL’s joint venture partner for South Beach. The agreement bumped up private sales to $4.6 billion last quarter, composing the bulk of overall investment sales at 79.2%.
Bloomsbury Residences Qingjian Realty and Forsea Holdings
Realty investments in Singapore saw assessed activity in 2Q2025, as markets encountered volatility brought on by the US’s statement of capturing tolls 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 raise of only 1.1%, along with a 13.9% y-o-y decline.
Knight Frank has actually maintained its financial investment sales projection for the full year, reaching between $27 billion and $30 billion.
Knight Frank sees that sales activity will “remain prudent and judicious” entering into the 2nd fifty percent of the year. However, the 2H2025 GLS programme is expected to support sales. “The 10 brand-new GLS sites presented in the 2H2025 Confirmed List are generally in good locations, with many having a capacity of less than 600 new homes, well throughout the favoured parameters for developers,” Tan says.
Residential deals dropped in 2Q2025, decreasing 52.3% q-o-q and 57% y-o-y to $1.8 billion. Most of residential sales came from the grant of 2 Government Land Sale (GLS) sites at Lentor Gardens and Shore Drive for $1 billion collectively. The quarter additionally saw the first residential collective sale of the year: the 24-unit, estate River Valley Apartments, which cost $56 million in February.
