Real estate investments up 1.1% q-o-q in 2Q2025 amid cautious activity: Knight Frank
Hospitality investment sales climbed 284% q-o-q to $585.8 million in 2Q2025. Quantity was upheld 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.
In contrast, industrial activity grabbed 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 contracts 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.
Sales in 2Q2025 were strengthened by City Developments’ (CDL) sale of its 50.1% stake in office development South Beach at a $1.4 billion valuation. The stake was sold to IOI Properties Group, CDL’s joint venture partner for South Beach. The arrangement hit up private sales to $4.6 billion last quarter, making up the bulk of overall investment sales at 79.2%.
Knight Frank has actually maintained its investment sales forecast for the complete year, ranging between $27 billion and $30 billion.
The industrial market in addition recorded two successful collective sales last quarter. Ching Shine Industrial Building fetched $113.2 million in April, while MacPherson Industrial Complex sold for $103.9 million in May.
Real estate investments in Singapore observed assessed activity in 2Q2025, as markets encountered volatility taken on by the United States’s statement of capturing charges and the unraveling Israel-Iran conflict. Research Study by Knight Franks shows that $5.8 billion in investment sales were reported last quarter. This stands for a q-o-q grow of just 1.1%, in addition to a 13.9% y-o-y decline.
Nonetheless, underlying interest in Singapore stays intact, states Galven Tan, Chief Executive Officer of Knight Frank Singapore. “Active capital remains keen on thematic fields, which are going to view more success with the narrowing of the bid-ask void.”
Knight Frank sees that sales activity will “remain prudent and judicious” entering into the 2nd fifty percent of the year. However, the 2H2025 GLS programme is anticipated to support sales. “The ten new GLS sites presented in the 2H2025 Confirmed List are generally in good places, with many having a capacity of less than 600 new homes, well inside the favoured parameters for developers,” Tan says.
Commercial offers also yielded around $1.8 billion last quarter, soaring 17.8% q-o-q on the back of the South Beach proceeding. Nevertheless, the number is 10.5% lesser on a y-o-y basis.
Residential deals dropped 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 2 Government Land Sale (GLS) sites at Lentor Gardens and Shore Drive for $1 billion collectively. The quarter additionally saw the very first residential collective sale of the year: the 24-unit, freehold River Valley Apartments, which sold for $56 million in February.
