Singapore Real Estate Investment Market Regains Momentum Full Year Sales Could Hit Around 30 Bil

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The property market in Singapore saw a significant surge in investments during the third quarter of 2025, making it the most robust period for real estate investments this year. According to research compiled by Colliers, a total of $10.3 billion in investment sales were recorded, representing a 35.6% increase from the previous quarter and the highest quarterly figure in more than three years.

In a separate report by Savills, real estate investments were pegged at $11.09 billion for the same quarter. Cumulatively, the total investment sales for the first nine months of 2025 amounted to $22.72 billion, an increase of 17.9% compared to the same period last year.

The surge in sales can be attributed to the land parcels awarded under the Government Land Sales (GLS) programme. In the third quarter alone, seven residential sites, one commercial and residential site, and four industrial sites were awarded, totaling nearly $4.15 billion, a significant increase of 242% compared to the previous quarter.

According to Savills’ report, developer participation in GLS tenders also increased, with an average of 6.5 bids per site in the last quarter. This is considerably higher than the levels seen in the past two years, which can be attributed to the increase in new launches and lower interest rates, resulting in a boost in new home sales.

Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore, notes that most real estate investment sales were driven by public transactions. However, he also acknowledges that the number of private investment sales remains low, excluding related party transactions and REIT IPO deals.

Despite this, Lake remains optimistic, stating that the drop in interest rates this year could lead to an increase in open market private investment sales in the fourth quarter of 2025 and in 2026. He also mentions that the existing price gap for many assets may need to be overcome for this to happen.

Alan Cheong, executive director at Savills Research and Consultancy, shares this optimism, stating that the conditions in the capital market have suddenly and favorably turned around, allowing for a strong performance in investment sales in the second half of 2025. He also adds that investment sales for the first nine months of the year have already exceeded Savills’ full-year estimate of $20 billion.

Colliers also shares a positive outlook, stating that the easing of interest rates and renewed confidence in public markets will lead to a resurgence in private asset investments. Tan Boon Leong, executive director and co-head of investment services at Colliers Singapore, predicts that institutional capital will make a comeback, driving strategies focused on redevelopment, lease optimization, and emerging sectors.

Catherine He, head of research at Colliers Singapore, also mentions that despite tighter yields, Singapore remains a top choice for global investors seeking diversification. For the full year, Colliers projects investment sales to range between $29 billion to $32 billion, representing a growth of 10% to 20% compared to the previous year. Looking ahead, they expect emerging asset classes such as co-living and workers’ dormitories to become key growth drivers in 2026.

In conclusion, the real estate market in Singapore remains robust, and both Savills and Colliers have upgraded their forecasts, projecting a strong performance in investment sales this year and the next. With the current market conditions and emerging sectors, the sector is expected to continue to attract global investors seeking diversification opportunities.