Investment sales hit eight-year high in 2025: Colliers
Lendlease REIT’s purchased a 70% stake in Paya Lebar Quarter (PLQ) Mall for $619.5 million in November 2025. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
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According to Colliers’ 4Q2025 Investment Market Insights and 2026 Outlook for Singapore, total investment sales peaked at $36.1 billion in 2025 — the highest level in eight years. “The eight‑year high in 2025 reflects a market with strong fundamentals and long-term growth potential,” says Catherine He, head of research at Colliers.
In 4Q2025, investment sales grew 10.3% q-o-q to $11.5 billion, driven by higher transactions across most segments.
Commercial investment sales totalled $3.1 billion in 4Q2025, rising 24.4% q-o-q and 277% y-o-y. This was driven by large-scale office deals, including Keppel REIT’s acquisition of a 33% stake in Marina Bay Financial Centre Tower 3 for $1.45 billion in December 2025, and retail transactions such as Lendlease REIT’s purchase of a 70% stake in Paya Lebar Quarter (PLQ) Mall for $619.5 million in November 2025.
Residential investment sales volume totalled $4.5 billion in 4Q2025, representing an increase of 16.2% q-o-q and 95.3% y-o-y. The figure was led by government land sales (GLS), with six sites awarded for $4.6 billion, including the first residential plot at the Greater Southern Waterfront and an integrated site at Hougang Central. In the private residential market, about 10 Good Class Bungalows (GCBs) were sold last quarter, including a GCB at Peirce Road that fetched $148 million.
Industrial investment sales volume surged 97.2% q-o-q to $2.1 billion in 4Q2025, despite seeing a 13% y-o-y drop, due to portfolio trades and GLS activity. These included a divestment of eight non-core properties by ESR-REIT to Brookfield Asset Management for $338.1 million in December 2025, and CapitaLand Ascendas REIT’s purchase of three industrial properties from Vita Partners (a joint-venture by Warburg Pincus and Lendlease) for around $565.8 million in October 2025.
Looking ahead, Colliers expects the momentum in the capital markets to carry into 2026. “With interest rates continuing to ease, spreads widening and positive investor sentiments, we are projecting this momentum to continue into 2026, with investment sales coming in at around 5% to 10% higher, at $36 to $39 billion,” says He.
Terry Wong, Colliers’ head of capital markets and investment services for Singapore, believes that lower financing costs, widening spreads and improving capital raising windows will accelerate deal execution in 2026. “We expect core offices to remain highly contested, modern logistics to stay resilient and select retail to offer compelling risk-adjusted returns.
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