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 marketed to IOI Properties Group, CDL’s joint venture partner for South Beach. The agreement hit up private sales to $4.6 billion last quarter, composing the bulk of general investment sales at 79.2%.
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 significant industrial contracts 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.
Nonetheless, underlying interest in Singapore remains intact, says Galven Tan, CEO of Knight Frank Singapore. “Active capital remains interested on thematic sectors, that will see more success with the narrowing of the bid-ask space.”
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) locations at Lentor Gardens and Lakeside Drive for $1 billion collectively. The quarter also saw the first residential collective sale of the year: the 24-unit, freehold River Valley Apartments, which sold for $56 million in February.
Commercial arrangements also amounted to approximately $1.8 billion last quarter, increasing 17.8% q-o-q on the back of the South Beach transaction. However, the number is 10.5% lower on a y-o-y basis.
Realty investments in Singapore saw assessed activity in 2Q2025, as industry took on volatility brought on by the United States’s news of sweeping charges and the unraveling Israel-Iran dispute. Research Study by Knight Franks shows that $5.8 billion in investment sales were reported last quarter. This stands for a q-o-q increase of just 1.1%, as well as a 13.9% y-o-y decrease.
Hospitality property sales climbed 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 acquired by Weave Living, BlackRock and Lian Beng Group for $100 million.
Knight Frank has actually preserved its financial investment sales forecast for the complete year, running in between $27 billion and $30 billion.
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 cost $103.9 million in May.
Knight Frank sees that sales event 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 presented 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.
