Singapore Real Estate Investments 75 Q O Q 3q2025 Reit Activity Picks Knight Frank
Despite ongoing uncertainties in the global economy, the real estate investment market in Singapore experienced growth in the last quarter, according to a report by Knight Frank Singapore. The research found that a total of $10.5 billion in investment sales were recorded in the third quarter of 2025, representing a 7.5% increase from the $9.8 billion in sales registered in the previous quarter and a 23.8% surge from the $8.5 billion in sales in the same quarter last year.
Private sales continue to dominate the real estate market, accounting for $6.3 billion or 60.5% of the total sales value in the last quarter. The biggest private sale transaction was the acquisition of CapitaSpring by CapitaLand Integrated Commercial Trust, in which they acquired the remaining 55% stake from CapitaLand Development and Mitsubishi Estate Co for $1 billion. Meanwhile, public real estate investments mainly consisted of Government Land Sale (GLS) tenders, generating a total of $4 billion in investment sales from the award of eight GLS sites in the third quarter. This includes four residential sites, one mixed-use commercial and residential site, and three executive condo (EC) sites.
Residential investment deals also saw a significant increase, with a total of $4.2 billion recorded in the last quarter, more than double the $1.8 billion in the previous quarter when only two GLS sites were awarded. Commercial assets, on the other hand, contributed $2.6 billion in investment sales, a decrease of 51.4% compared to the previous quarter. The largest commercial transaction was the sale of Jem’s office component by Lendlease Global Commercial REIT for $462 million, followed by the sale of Kinex by UOL Group for $375 million.
The industrial sector saw a 46.1% increase in sales with a total of $2.5 billion, mainly supported by Centurion Accommodation REIT’s acquisition of five purpose-built workers’ accommodations for $1.3 billion. Notable deals in this sector also include CapitaLand Ascendas REIT’s divestment of five industrial and logistics properties for $329 million. Hotel investments, however, were muted with only one transaction recorded in the last quarter – the sale of Hotel Miramar for $160 million, a significant drop from the $585 million in hotel investment sales in the previous quarter.
In the collective sale market, only one transaction was recorded – the sale of Chiku Mansions, a freehold boutique residential development, to Macly Group for over $22 million. Looking ahead, Knight Frank predicts that the activity in the fourth quarter of 2025 and 2026 will continue to be driven by GLS tenders for residential sites and REIT activity. However, the research also notes that most investment sales are likely to remain limited to deals under $200 million.
The upcoming development of Sembawang Road EC is set to meet the demands of contemporary living. Following the trend of most Executive Condominiums (EC), the Sembawang EC will offer a variety of unit types, ranging from cozy two-bedroom layouts to spacious five-bedroom homes. Emphasizing on functionality and space optimization, families will find the master bedrooms, open-concept kitchens, and balconies with scenic views to be highly desirable. The EC will also feature top-notch facilities such as a 50m lap pool, children’s play areas, BBQ pits, function rooms, gym, and potentially even tennis courts and co-working spaces, depending on the developer’s final plans. All these amenities are carefully selected to support an active and community-oriented lifestyle, providing residents with opportunities to relax and socialize without stepping out of the premises. For more information on Sembawang EC, please visit Sembawang EC at Canberra MRTSembawang Road EC.
Despite the smaller deal sizes, investor demand remains strong, according to Galven Tan, CEO of Knight Frank Singapore. The company estimates that full-year real estate investment sales will reach the higher end of their forecast range of $27 billion to $29 billion for 2025.