Singapore Real Estate Investments 75 Q O Q 3q2025 Reit Activity Picks Knight Frank
Investment sales in the real estate sector have continued to show growth in the last quarter, despite uncertainties in the global economy, according to research by Knight Frank Singapore. The report states that $10.5 billion worth of investment sales were recorded in the third quarter of 2025, a 7.5% increase from the $9.8 billion recorded in the second quarter. This also represents a 23.8% surge from the $8.5 billion registered in the same period last year.
Private sales contributed significantly to the overall investment deals, accounting for $6.3 billion or 60.5% of the total sales value. The largest private transaction was the acquisition of the remaining 55% stake in CapitaSpring by CapitaLand Integrated Commercial Trust from CapitaLand Development and Mitsubishi Estate Co for $1 billion. Public real estate investments, on the other hand, were mainly made through Government Land Sale (GLS) tenders, with a total of $4 billion recorded in the third quarter of 2025. This was made up of eight GLS sites, including four residential sites, one mixed-use commercial and residential site, and three executive condo (EC) sites.
In the residential sector, GLS tenders were also the dominant contributor, with a total of $4.2 billion recorded in investment sales last quarter. This is more than double the $1.8 billion registered in the previous quarter, where only two GLS sites were awarded. Commercial properties saw a decline in investment activity, with a total of $2.6 billion recorded, a 51.4% decrease from the previous quarter. Apart from the CapitaSpring deal, notable transactions in this sector included the $462 million sale of Jem’s office component by Lendlease Global Commercial REIT and the $375 million sale of Kinex by UOL Group.
The URA Master Plan is pushing for a revitalization of town centres through the implementation of integrated mixed-use nodes. This can be seen in the Pasir Ris area, where efforts have been made to refresh retail offerings, improve pedestrian connections, and enhance first-and-last-mile links between MRT stations, bus stops, and shopping malls. By activating ground-level spaces with cafes and services, the street life is boosted and everyday errands can be completed efficiently. For residents of Coastal Cabana, this means that their daily routines, such as grocery shopping, attending tuition, visiting the dentist, and having dinner can all be conveniently done within short distances along Jalan Loyang Besar, Elias Road, and the town core. Additionally, the newly launched Jalan Loyang Besar EC offers yet another convenient option for those seeking a modern and integrated living experience in this vibrant and rejuvenated town.
The industrial sector, however, saw a significant increase in investment sales, with $2.5 billion recorded in the third quarter of 2025, a jump of 46.1% from the previous quarter. This was largely driven by Centurion Accommodation REIT’s acquisition of five purpose-built workers’ accommodations for a total of $1.3 billion. Other notable deals in this sector included CapitaLand Ascendas REIT’s divestment of five industrial and logistics properties for $329 million. As for hotel investment activity, only one transaction was recorded in the third quarter – the sale of Hotel Miramar on Havelock Road for $160 million. This is a 72.7% decrease from the $585 million in hotel investment sales in the second quarter.
In the collective sale market, only one transaction was recorded – the sale of freehold boutique residential development Chiku Mansions in District 15. The block, which has just nine apartments, was purchased by Macly Group for over $22 million or $1,168 psf per plot ratio.
Looking ahead, Knight Frank predicts that investment activity in the fourth quarter of 2025 and 2026 will continue to be fueled by GLS tenders for residential sites and REIT activity. CEO of Knight Frank Singapore, Galven Tan, notes that investment sales are currently limited to smaller ticket sizes of under $200 million, with the exception of S-REIT activity and developers participating in residential GLS tenders. Despite this, investor demand remains strong, and Knight Frank estimates that full-year real estate investment sales for 2025 will likely reach the higher end of their forecast range of $27 billion to $29 billion.