Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
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 offered to IOI Properties Group, CDL’s joint venture partner for South Beach. The agreement bumped up private sales to $4.6 billion last quarter, making up the bulk of general investment sales at 79.2%.
Hospitality investment sales climbed 284% q-o-q to $585.8 million in 2Q2025. Volume was supported 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 acquired by Weave Living, BlackRock and Lian Beng Group for $100 million.
Real estate investments in Singapore saw measured activity in 2Q2025, as industry took on volatility taken on by the US’s statement of capturing excises 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 rise of only 1.1%, in addition to a 13.9% y-o-y decline.
Knight Frank views that sales activity will “remain prudent and judicious” entering into the 2nd fifty percent of the year. However, the 2H2025 GLS programme is expected to support sales. “The 10 new GLS sites presented in the 2H2025 Confirmed List are generally in good areas, with most having a capacity of less than 600 new homes, well inside the favoured parameters for developers,” Tan says.
Knight Frank has actually maintained its financial investment sales projection for the complete year, reaching in between $27 billion and $30 billion.
Commercial agreements even totalled approximately $1.8 billion last quarter, increasing 17.8% q-o-q on the back of the South Beach proceeding. However, the figure is 10.5% lower on a y-o-y basis.
In contrast, industrial activity got in 2Q2025, with financial investment sales surging 560% q-o-q and 311% y-o-y to strike $1.6 billion. According to Knight Frank, several remarkable industrial deals 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.
Springleaf Residence Singapore
Residential deals fell 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 Lakeside Drive for $1 billion jointly. The quarter even saw the very first residential collective sale of the year: the 24-unit, estate River Valley Apartments, which cost $56 million in February.
Nevertheless, underlying interest in Singapore is still intact, states Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital stays keen on thematic sectors, which are going to see more success with the narrowing of the bid-ask space.”
The industrial market also recorded two successful collective sales last quarter. Ching Shine Industrial Building fetched $113.2 million in April, while MacPherson Industrial Complex cost $103.9 million in May.
