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, whilst Momentus Serviced Residences Novena was purchased by Weave Living, BlackRock and Lian Beng Group for $100 million.
Commercial transactions even amounted to approximately $1.8 billion last quarter, ascending 17.8% q-o-q on the back of the South Beach proceeding. However, the figure is 10.5% lesser on a y-o-y basis.
The industrial market in addition recorded two 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.
Nonetheless, underlying interest in Singapore is still intact, states Galven Tan, CEO of Knight Frank Singapore. “Active capital stays interested on thematic fields, that are going to 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 marketed to IOI Properties Group, CDL’s joint venture partner for South Beach. The deal bumped up private sales to $4.6 billion last quarter, making up the bulk of total investment sales at 79.2%.
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 expected to support sales. “The ten 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 within the favoured parameters for developers,” Tan says.
Knight Frank has actually preserved its investment sales projection for the full year, ranging between $27 billion and $30 billion.
On the other hand, industrial activity grabbed in 2Q2025, with investment sales surging 560% q-o-q and 311% y-o-y to strike $1.6 billion. According to Knight Frank, a number of notable industrial transactions 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.
Residential offers dropped 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 two Government Land Sale (GLS) sites at Lentor Gardens and Lakeside Drive for $1 billion collectively. The quarter additionally saw the very first residential cumulative sale of the year: the 24-unit, property River Valley Apartments, which sold for $56 million in February.
Realty investments in Singapore saw evaluated activity in 2Q2025, as markets took on 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 stands for a q-o-q grow of only 1.1%, in addition to a 13.9% y-o-y decline.
