Singapore real estate investment market regains momentum, full-year sales could hit around $30 bil
Savills has revised its 2025 real estate investment sales forecast to between $28 billion and $30 billion , while Colliers' full-year projection ranges from $29 billion to $32 billion (Picture: Samuel Isaac Chua/The Edge Singapore)
Singapore real estate investments surged in 3Q2025, achieving its strongest quarterly performance to date this year. Research compiled by Colliers tabulated $10.3 billion in investment sales last quarter, which represents a 35.6% spike q-o-q and the highest quarterly figure in over three years, the firm states.
Source: Colliers research
A separate report by Savills pegged real estate investments at $11.09 billion for 3Q2025. Cumulatively, investment sales have totalled $22.72 billion for the first nine months of the year, 17.9% higher compared to the same period last year, it adds.
Source: Savills Research & Consultancy
The pick-up in sales was driven by land parcels awarded under the Government Land Sales (GLS) programme. Seven residential sites, one commercial and residential site, and four industrial sites were awarded in 3Q2025 for a total of nearly $4.15 billion, up nearly 242% q-o-q.
Savills' report highlights that developer participation in GLS tenders has increased to an average of 6.5 bids per site last quarter, significantly higher than levels seen over the past two years and the first half of 2025. This comes as new launches, coupled with falling interest rates, have boosted new home sales.
Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore, notes that real estate investment sales continued to be underpinned by public transactions. “The actual number of private investment sales excluding related party transactions and REIT IPO deals remains disappointingly low,” he says.
Still, he expects things to pick up in the coming months. “The large drop in interest rates (SORA) this year bodes well for an increase in open market private investment sales in 4Q2025 and in 2026, assuming a stubborn price gap which exists for many assets can be overcome.”
Alan Cheong, executive director at Savills Research & Consultancy, is also optimistic. “Capital market conditions have turned around very suddenly and very favourably for investment sales to power ahead for 2H2025,” he observes, adding that investment sales for the first nine months of 2025 have already exceeded Savills’ full-year estimate of $20 billion.
To that end, the firm has upgraded its forecast, with total investment sales now projected to come in between $28 billion and $30 billion.
Colliers shares the sanguine outlook. “Easing interest rates and renewed confidence in public markets are setting the stage for a resurgence in private assets”, notes Tan Boon Leong, executive director and co-head of investment services at Colliers Singapore. “Institutional capital is expected to make a comeback, driving strategies focused on redevelopment, lease optimisation, and emerging sectors.”
Catherine He, head of research at Colliers Singapore, adds that despite tighter yields, Singapore remains a key market for global investors seeking diversification.
Colliers projects full-year investment sales to range between $29 billion to $32 billion, which represents a growth of 10% to 20% y-o-y. “Looking ahead to 2026, emerging asset classes such as co-living and workers’ dormitories are poised to become key growth drivers,” it adds.
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