Savills Singapore has upped its 2026 investment sales forecast from $34 billion to between $35 billion and $40 billion (Picture: Samuel Isaac Chua/Edgeprop Singapore)
Savills Singapore has revised its full-year investment sales forecast for 2026 upwards. The firm’s projection, originally at $34 billion for the year, has now been bumped up to between $35 billion and $40 billion, the company states in an April 14 press release.
The updated forecast follows a robust first quarter that builds on momentum from 2025. Data compiled by Savills puts total investment sales in 1Q2026 at $11.48 billion, representing a 3.5% q-o-q increase, as well as a 95.4% surge y-o-y. For the whole of 2025, investment sales had totalled $34.12 billion, up 27% y-o-y, based on Savills’ research.
The 1Q2026 figure marks the highest quarterly investment sales since 3Q2013, when $13.84 billion in sales volume was recorded, the firm says.
Read also: Singapore real estate investments up 10% q-o-q in unusually robust 1Q2026: Knight Frank
In addition, the 1Q2026 sales figure is likely higher, as Savills has excluded the injection of Asia Square Tower 1 by the Qatar Investment Authority into the Singapore Central Private Real Estate Fund (SCPREF), citing a lack of data on the deal’s exact size.
In any case, the company expects investment sales volume to remain supported in the coming quarters, underpinned by low interest rates and capital inflows driven by Singapore’s reputation as a safe haven.
“Despite the inevitable uncertainty resulting from the war in Iran, we are optimistic that investment sales activity will remain strong into 2Q and beyond,” says Jeremy Lake, managing director for investment sales and capital markets at Savills Singapore.
Alan Cheong, Savills Singapore’s executive director of research and consultancy, predicts investment activity will “remain steady” across major sectors, notwithstanding any quarterly swings due to large-scale deals.
In particular, he notes that private office and retail assets are set to be “among the more resilient performers in 2026”, supported by stable income profiles, improving investor sentiment and a narrowing gap in price expectations.
According to Savills’ research, public sector deals accounted for $4.9 billion (42.7%) of total investment sales in 1Q2026, largely led by the award of Government Land Sale (GLS) parcels. This is up 42.2% from $3.44 billion in the prior quarter.
Read also: Clearer markets, brighter sentiment to boost Apac real estate investment momentum in 2026: Colliers
On the other hand, private sector deals slid 13.9% q-o-q to $6.58 billion, underpinned by lower figures across the residential, mixed-use and commercial asset classes. Nonetheless, Savills highlights that the moderation comes off a high base in 4Q2025, rather than a material weakening of underlying market fundamentals.
Residential investment transactions totalled $4.42 billion in 1Q2026, on par with the $4.43 billion registered in the previous quarter, as developers remained relatively active in bidding for residential GLS sites. This reflects developers' renewed confidence in the market, following the strong performance of new launches so far this year, Savills adds.
Residential investment sales were also supported by resilient activity in the luxury residential segment. A total of 72 private residences were sold for at least $10 million in 1Q2026, resulting in total luxury residential sales of about $1.1 billion.
Commercial investment transactions clocked in at $2.04 billion in 1Q2024. This represents a 42.6% fall from 4Q2025, when several large-scale transactions took place, including Keppel Reit’s purchase of Hongkong Land’s one-third stake in Marina Bay Financial Tower 3 for $937.5 million.
In the industrial sector, investment volume jumped 38.1% q-o-q to hit $2.94 billion in 1Q2026. The growth was underpinned by deals driven by S-Reits, as well as transactions linked to Reit IPOs.
Meanwhile, the mixed-use sector saw $1.89 billion in investment sales in 1Q2026 — more than double the previous quarter. This was largely driven by the award of a commercial and residential GLS site at Hougang Central for $1.5 billion, along with the collective sale of the rear block of The Centrepoint on Orchard Road for $391.9 million.
Read also: Savills bolsters capital markets bench in Asia Pacific, eyes more investor activity
Separately, Colliers published its 1Q2026 research report on the investment sales market on April 15. The firm estimated that Singapore eal estate investment sales hit a record $16.6 billion last quarter, spiking 44.6% q-o-q. "The standout quarter was characterised by concentrated liquidity, with investors prioritising prime opportunities as borrowing costs ease and market conditions stabilise," it added.
Based on Colliers data, this is the highest quarterly investment sales figure ever recorded. Catherine He, head of research at Colliers Singapore, adds that capital flows concentrated on assets with "clear income visibility, durable tenant demand and defensible long-term positioning", as investors become increasingly selective.
Sales volume in 1Q2026 was underpinned by commercial deals, which totalled $10.8 billion, based on Colliers' tabulation. The figure was largely bolstered by the SCPREF's seed assets valued at $8.2 billion, comprising 100% interest in Asia Square Tower 1 and One Raffles Link, and a one-third interest in MBFC Tower 1 & 2, Marina Bay Link Mall and One Raffles Quay.
Looking ahead, Colliers expects ideal flows to remain active, though volumes are expected to normalise from 1Q2026.
“After a record quarter, activity should moderate but remain firm," says Terry Wong, head of capital markets and investment services at Colliers Singapore. "Lower borrowing costs are improving deal viability, and capital is concentrating in prime, income-led properties where risks are easier to price and execution is straightforward."