Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Hospitality investment sales climbed up 284% q-o-q to $585.8 million in 2Q2025. Quantity was sustained 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.
Canberra Crescent Residences condominium
Knight Frank views that sales activity will “remain prudent and judicious” entering into the second fifty percent of the year. However, the 2H2025 GLS programme is anticipated to support sales. “The ten new GLS sites introduced in the 2H2025 Confirmed List are generally in good locations, with many having a capacity of less than 600 new homes, well inside the favoured parameters for developers,” Tan says.
Nonetheless, underlying interest in Singapore stays intact, says Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital remains eager on thematic fields, that are going to see more success with the narrowing of the bid-ask space.”
Commercial agreements even totalled 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.
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, numerous 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.
Residential offers dropped in 2Q2025, decreasing 52.3% q-o-q and 57% y-o-y to $1.8 billion. The majority of residential sales originated from the grant of two Government Land Sale (GLS) sites at Lentor Gardens and Shore Drive for $1 billion collectively. The quarter also viewed the very first residential cumulative sale of the year: the 24-unit, freehold River Valley Apartments, which sold for $56 million in February.
Knight Frank has kept its financial investment sales forecast for the full year, ranging in between $27 billion and $30 billion.
The industrial market additionally recorded two successful collective sales last quarter. Ching Shine Industrial Building brought $113.2 million in April, while MacPherson Industrial Complex brought $103.9 million in May.
Real estate investments in Singapore observed evaluated activity in 2Q2025, as industry took on volatility taken on by the US’s news of capturing tolls and the unraveling Israel-Iran problem. Research Study by Knight Franks shows that $5.8 billion in investment sales were recorded last quarter. This stands for a q-o-q raise of only 1.1%, along with a 13.9% y-o-y decline.
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 marketed 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%.
