Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Commercial offers also totalled around $1.8 billion last quarter, going up 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.
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 brought $103.9 million in May.
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 deal hit up private sales to $4.6 billion last quarter, comprising the bulk of overall investment sales at 79.2%.
Residential offers slipped in 2Q2025, decreasing 52.3% q-o-q and 57% y-o-y to $1.8 billion. Most 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 saw the very first residential collective sale of the year: the 24-unit, estate River Valley Apartments, which sold for $56 million in February.
In contrast, industrial activity got in 2Q2025, with investment sales rising 560% q-o-q and 311% y-o-y to hit $1.6 billion. According to Knight Frank, a number of significant industrial offers 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.
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 brand-new GLS sites introduced in the 2H2025 Confirmed List are generally in good areas, with most having a potential of less than 600 new homes, well within the favoured parameters for developers,” Tan says.
Knight Frank has actually preserved its financial investment sales projection for the full year, ranging in between $27 billion and $30 billion.
Hospitality property sales climbed up 284% q-o-q to $585.8 million in 2Q2025. Volume 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.
Realty investments in Singapore saw evaluated activity in 2Q2025, as markets encountered volatility brought on by the United States’s news of sweeping tolls and the unraveling Israel-Iran conflict. Research by Knight Franks shows that $5.8 billion in investment sales were reported last quarter. This represents a q-o-q rise of only 1.1%, as well as a 13.9% y-o-y decline.
Nonetheless, hiding interest in Singapore remains intact, says Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital stays eager on thematic fields, which are going to view more success with the narrowing of the bid-ask gap.”
