Singapore real estate investments up 7.5% q-o-q in 3Q2025 as REIT activity picks up: Knight Frank

According to Knight Frank, a total of $10.5 billion in real estate investment sales were recorded in 3Q2025 (Picture: Albert Chua, The Edge Singapore)

Real estate investment sales grew last quarter despite ongoing uncertainties in the global economy, according to a research report by Knight Frank Singapore. A total of $10.5 billion in investment sales were recorded in 3Q2025, 7.5% higher than the $9.8 billion registered in 2Q2025. It is also a 23.8% surge over the $8.5 billion in sales logged in the third quarter of last year.

Private sales continued to make up the bulk of real estate deals last quarter, accounting for $6.3 billion, or 60.5% of total sales value. The biggest private sale transaction was CapitaLand Integrated Commercial Trust’s acquisition of the remaning 55% stake in CapitaSpring it does not own from CapitaLand Development and Mitsubishi Estate Co for $1 billion.

Public real estate investments consisted predominantly of Government Land Sale (GLS) tenders. A total of $4 billion in investment sales came from the award of eight GLS sites in 3Q2025, consisting of four residential sites, one mixed-use commercial and residential site, and three executive condo (EC) sites.

The GLS tenders also made up the majority of residential investment deals, which totalled $4.2 billion last quarter. This is more than double the $1.8 billion recorded in the quarter before, when only two GLS sites were awarded.

Commercial assets contributed to $2.6 billion in investment sales in 3Q2025, plummeting 51.4% q-o-q. Apart from the CapitaSpring deal, other notable commercial transactions include the $462 million sale of Jem’s office component by Lendlease Global Commercial REIT; and the $375 million sale of Kinex by UOL Group.

In the industrial sector, sales totalled $2.5 billion last quarter, jumping 46.1% q-o-q. Sales were largely underpinned by Centurion Accommodation REIT’s acquisition of five purpose-built workers’ accommodations for a combined total of $1.3 billion. Other notable deals include CapitaLand Ascendas REIT’s divestment of five industrial and logistics properties for $329 million.

Hotel investment activity was muted in 3Q2025, with only one transaction recorded: the sale of Hotel Miramar on Havelock Road for $160 million. This is 72.7% lower than the $585.million in hotel investment sales chalked up in 2Q2025.

In the collective sale market, only one transaction materialised: the sale of freehold boutique residential development Chiku Mansions in District 15. The four-storey walk-up block with just nine apartments was purchased by Macly Group for over $22 million, or $1,168 psf per plot ratio.

Looking ahead, Knight Frank anticipates activity for 4Q2025 and 2026 to continue to be supported by GLS tenders for residential sites and REIT activity. “Aside from S-REIT activity and developers participating in residential GLS tenders, investment sales generally remain limited to ticket sizes of under $200 million,” observes Galven Tan, CEO of Knight Frank Singapore.

Notwithstanding the smaller deal size, investor demand remains resilient, Tan says. Knight Frank estimates full-year real estate investment sales to hit the higher end of their forecast range of $27 billion to $29 billion for 2025.