Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Commercial transactions also amounted to approximately $1.8 billion last quarter, going up 17.8% q-o-q on the back of the South Beach transaction. However, the figure is 10.5% lower on a y-o-y basis.
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 came from the award of 2 Government Land Sale (GLS) locations at Lentor Gardens and Shore Drive for $1 billion collectively. The quarter also viewed the first residential cumulative sale of the year: the 24-unit, property River Valley Apartments, which sold for $56 million in February.
Sales in 2Q2025 were bolstered by City Developments’ (CDL) sale of its 50.1% risk in office development South Beach at a $1.4 billion valuation. The stake was sold to IOI Properties Group, CDL’s joint venture partner for South Beach. The arrangement hit up private sales to $4.6 billion last quarter, making up the bulk of general investment sales at 79.2%.
Realty investments in Singapore observed measured activity in 2Q2025, as markets encountered volatility brought on by the United States’s news of sweeping charges and the unraveling Israel-Iran dispute. Research Study by Knight Franks shows that $5.8 billion in investment sales were documented last quarter. This stands for a q-o-q raise of just 1.1%, as well as a 13.9% y-o-y decline.
The industrial market additionally recorded 2 successful collective sales last quarter. Ching Shine Industrial Building brought $113.2 million in April, while MacPherson Industrial Complex cost $103.9 million in May.
Nevertheless, underlying interest in Singapore is still intact, says Galven Tan, CEO of Knight Frank Singapore. “Active capital remains interested on thematic sectors, that are going to see more success with the narrowing of the bid-ask space.”
Knight Frank has actually kept its financial investment sales projection for the full year, running between $27 billion and $30 billion.
Knight Frank observes that sales activity will “remain prudent and judicious” entering into the second half of the year. However, the 2H2025 GLS programme is anticipated to sustain sales. “The ten brand-new GLS sites presented in the 2H2025 Confirmed List are generally in good places, with many having a potential of less than 600 new homes, well inside the favoured parameters for developers,” Tan says.
In contrast, industrial activity got in 2Q2025, with investment sales rising 560% q-o-q and 311% y-o-y to strike $1.6 billion. According to Knight Frank, several notable industrial offers 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.
Hospitality asset sales climbed up 284% q-o-q to $585.8 million in 2Q2025. Quantity was upheld 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.
