Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Sales in 2Q2025 were reinforced by City Developments’ (CDL) sale of its 50.1% risk 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 arrangement hit up private sales to $4.6 billion last quarter, composing the bulk of overall investment sales at 79.2%.
Nevertheless, underlying interest in Singapore remains intact, states Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital remains eager on thematic sectors, which are going to see more success with the narrowing of the bid-ask space.”
Commercial arrangements also yielded around $1.8 billion last quarter, ascending 17.8% q-o-q on the back of the South Beach proceeding. However, the number is 10.5% lesser on a y-o-y basis.
Real estate investments in Singapore observed evaluated activity in 2Q2025, as industry took on volatility carried on by the United States’s news of capturing excises and the unfolding Israel-Iran dispute. Research Study by Knight Franks shows that $5.8 billion in investment sales were reported last quarter. This represents a q-o-q grow of merely 1.1%, as well as a 13.9% y-o-y decline.
In contrast, industrial activity got in 2Q2025, with financial investment sales surging 560% q-o-q and 311% y-o-y to hit $1.6 billion. According to Knight Frank, a number of notable 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.
The industrial market in addition recorded 2 successful collective sales last quarter. Ching Shine Industrial Building brought $113.2 million in April, while MacPherson Industrial Complex sold for $103.9 million in May.
Hospitality investment sales climbed up 284% q-o-q to $585.8 million in 2Q2025. Volume 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 bought by Weave Living, BlackRock and Lian Beng Group for $100 million.
Knight Frank views that sales event will “remain prudent and judicious” entering into the 2nd fifty percent of the year. Nevertheless, the 2H2025 GLS programme is anticipated to support sales. “The 10 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 within the favoured parameters for developers,” Tan says.
Knight Frank has actually preserved its investment sales forecast for the full year, reaching in between $27 billion and $30 billion.
Residential deals fell in 2Q2025, dropping 52.3% q-o-q and 57% y-o-y to $1.8 billion. Most of residential sales came from the award of two Government Land Sale (GLS) sites at Lentor Gardens and Shore Drive for $1 billion collectively. The quarter additionally viewed the very first residential collective sale of the year: the 24-unit, freehold River Valley Apartments, which sold for $56 million in February.
