Commercial sector deals were the largest contributor to 1H2026 investment sales, followed by residential deals (Picture: Samuel Isaac Chua/EdgeProp Singapore)
The Singapore real estate investment market saw steady momentum in 2Q2026, despite heightened global uncertainty due to geopolitical conflicts. Investment activity was supported by lower interest rates and resilient occupier demand, added analysts in separate research reports published in July.
According to Knight Frank Singapore, real estate investment sales hit $15.1 billion in 2Q2026. The figure is roughly on par with the $16.1 billion sales recorded the previous quarter, and brought total sales for the first half of the year to $31.1 billion.
“The strong investment activity in the first six months of the year reflects Singapore's ever-increasing appeal as a ‘Switzerland of the East’, with investors favouring assets that offer recurring income and long-term value, especially in the commercial, industrial, hospitality and living sectors,” said Galven Tan, CEO of Knight Frank Singapore.
Meanwhile, Cushman & Wakefield’s analysis tabulated an investment volume of $35.2 billion for 1H2026. “The first half of 2026 exceeded expectations for Singapore’s real estate market, with improving capital market conditions reinforcing resilient occupier demand across multiple sectors,” said Wong Xian Yang, the firm’s head of research for Singapore and Southeast Asia.
Investment sales were led by commercial deals, which totalled $8 billion in 2Q2026, according to Knight Frank. This marks the third consecutive quarter commercial transactions have made up the majority of sales.
Major transactions last quarter included CapitaLand Integrated Commercial Trust’s (CICT) sale of Asia Square Tower 2, an integrated development in Marina Bay, to IOI Properties Group for $2.48 billion, along with CICT’s $3.9 billion purchase of Orchard Road development Paragon.
Top transactions in 2Q2026
Based on Cushman & Wakefield’s research, commercial investment sales made up 50.7% of total sales volume for the first six months of the year, or around $17.8 billion. This marks a significant jump from the same period the year before, when commercial deals accounted for 23.8% of total volume.
Cushman & Wakefield highlighted renewed investor interest in Singapore office and retail assets amid tighter supply. “As of 1Q2026, Singapore office and retail property spreads have exceeded prepandemic levels which is further supported by still-low borrowing costs,” it added.
Knight Frank noted that prime office assets continue to attract capital due to their ability to generate stable recurring rental income. This is supported by the tight supply of quality office space in the CBD.
Read also: Savills Singapore bumps up 2026 investment sales forecast on strong momentum
Residential investment deals were the second largest contributor to 2Q2026 sales, at $5.3 billion, based on Knight Frank data. Government land sales (GLS) made up the majority of investment activity, with five private residential sites and one executive condo (EC) site awarded for a total of $3.2 billion.
The residential segment also saw the sole collective sale of the quarter — Loyang Valley, a residential development in Pasir Ris that was purchased by a SingHaiyi Group-led consortium from $880 million in April.
The deal is the largest residential site sold en bloc since Thomson View in 2025, according to Cushman & Wakefield. The 206-unit condo on Bright Hill Drive was snapped up by UOL Group, Singapore Land Group and CapitaLand Development for $810 million last October.
Including the Loyang Valley sale, total residential land sales — encompassing GLS and en bloc sites — have already reached around 78% of the full-year year figure for 2025, Cushman & Wakefield pointed out. To that extent, the firm anticipates 2026 residential land sales to exceed last year’s amount.
The living and hospitality sectors recorded $1.2 billion worth of capital market deals in 2Q2026. The transactions underscore sustained investor appetite for Singapore hotel assets, added Knight Frank.
The largest transaction last quarter was the sale of the 575-key Crown Plaza Changi Airport for $500 million ($869,565 per key) to a joint venture between OUE and Japanese financial services company Tokyo Century.
Read also: Singapore real estate investments up 10% q-o-q in unusually robust 1Q2026: Knight Frank
Other hotel deals included CapitaLand Ascott Trust’s sale of Robertson House by The Crest Collection, a 336-unit luxury hotel on Unity Street, for $360 million ($1.1 million per key), along with the sale of the 272-room Orchid Hotel on Tras Link for $273 million ($1 million per key).
On the other hand, the industrial sector saw slower performance last quarter, with investment sales falling 80.8% q-o-q to $643.7 million, Knight Frank’s data showed.
However, Cushman & Wakefield highlighted a rebound in industrial collective sales in the first half of the year, following muted activity in 2025. This included the en bloc sale of Kewalram House, a 99-year leasehold private industrial property in Bukit Merah, to Soon Hock Enterprise Holding for $120.51 million in March.
“A steady wave of industrial en bloc activity continues to thrive, fuelled by developers actively acquiring sites to replenish their land banks for strata sales,” said Cushman & Wakefield.
Cushman & Wakefield expect the real estate investment market to continue picking up steam in the second half of the year. “While geopolitical developments will continue to shape sentiment, the combination of easing financing costs, limited new supply and healthy leasing fundamentals is creating a supportive environment for investment and market expansion in the months ahead," commented Wong.
Shaun Poh, Cushman & Wakefield’s executive director and head of capital markets for Singapore, expects transaction activity to broaden across sectors in 2H2026, with improvements especially for the industrial, retail and private residential sectors.
Building on the strong performance in 1H2026, Cushman & Wakefield are projecting full-year sales to surpass 2017’s record $36.8 billion, which would result in a new all-time high, based on its data.
Meanwhile, Knight Frank is projecting 2026 investment sales to be on par with last year's record-breaking $40 billion. “In the second half of 2026, deal flow is expected to remain active in continued flight-to-safety moves, supported by favourable interest rates,” said Tan.