Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Knight Frank views that sales activity will “remain prudent and judicious” going into the 2nd half of the year. However, the 2H2025 GLS programme is expected to sustain sales. “The ten new GLS sites introduced in the 2H2025 Confirmed List are generally in good locations, with most having a capacity of less than 600 new homes, well inside the favoured parameters for developers,” Tan says.
Residential deals slipped 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 two Government Land Sale (GLS) sites at Lentor Gardens and Lakeside Drive for $1 billion collectively. 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.
Commercial deals even amounted to approximately $1.8 billion last quarter, soaring 17.8% q-o-q on the back of the South Beach transaction. Nevertheless, the number is 10.5% lesser on a y-o-y basis.
Sales in 2Q2025 were strengthened 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, comprising the bulk of general investment sales at 79.2%.
Knight Frank has preserved its financial investment sales projection for the full year, ranging between $27 billion and $30 billion.
Real estate investments in Singapore observed evaluated activity in 2Q2025, as industry faced volatility taken on by the United States’s statement of capturing tariffs and the unfolding Israel-Iran problem. Research by Knight Franks shows that $5.8 billion in investment sales were recorded last quarter. This represents a q-o-q rise of only 1.1%, in addition to a 13.9% y-o-y decline.
Hospitality property sales climbed 284% q-o-q to $585.8 million in 2Q2025. Volume was sustained 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 purchased by Weave Living, BlackRock and Lian Beng Group for $100 million.
On the other hand, industrial activity got in 2Q2025, with financial investment sales rising 560% q-o-q and 311% y-o-y to hit $1.6 billion. According to Knight Frank, several significant 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.
Nevertheless, hiding interest in Singapore stays intact, claims Galven Tan, CEO of Knight Frank Singapore. “Active capital remains interested on thematic markets, that are going to view more success with the narrowing of the bid-ask gap.”
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 brought $103.9 million in May.
