Singapore Real Estate Investments 75 Q O Q 3q2025 Reit Activity Picks Knight Frank
Despite ongoing uncertainties in the global economy, the real estate investment market in Singapore saw a strong performance in the last quarter. According to a research report by Knight Frank Singapore, investment sales in the sector recorded a total of $10.5 billion in 3Q2025, a 7.5% increase from the previous quarter’s $9.8 billion. This also marks a 23.8% surge from $8.5 billion in the same period last year.
The majority of these sales were contributed by private deals, accounting for $6.3 billion or 60.5% of the total sales value. The largest private sale transaction was the acquisition of CapitaLand Integrated Commercial Trust’s remaining 55% stake in CapitaSpring from CapitaLand Development and Mitsubishi Estate Co for $1 billion.
Public real estate investments, on the other hand, were dominated by Government Land Sale (GLS) tenders. Eight GLS sites were awarded in 3Q2025, amounting to a total of $4 billion in investment sales. These sites comprised of four residential sites, one mixed-use commercial and residential site, and three executive condo (EC) sites.
The GLS tenders also accounted for the majority of residential investment deals. A total of $4.2 billion in sales were recorded in this segment, more than double the $1.8 billion in the previous quarter when only two GLS sites were awarded.
In the commercial sector, investment sales saw a significant decline of 51.4% from the previous quarter, amounting to $2.6 billion. Apart from the CapitaSpring deal, other notable 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.
Meanwhile, sales in the industrial sector soared by 46.1% q-o-q to $2.5 billion, mainly due to Centurion Accommodation REIT’s acquisition of five purpose-built workers’ accommodations for $1.3 billion. Other notable deals include CapitaLand Ascendas REIT’s divestment of five industrial and logistics properties for $329 million.
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Hotel investment activity remained subdued in 3Q2025, with only one transaction recorded – the sale of Hotel Miramar on Havelock Road for $160 million. This is a 72.7% drop from the $585.7 million in hotel investment sales recorded in the previous quarter.
In the collective sale market, only one transaction materialised – the sale of freehold boutique residential development Chiku Mansions in District 15. Macly Group purchased the four-storey walk-up block, which comprises of nine apartments, for over $22 million, or $1,168 psf per plot ratio.
Looking ahead, Knight Frank predicts that activity in 4Q2025 and 2026 will continue to be driven by GLS tenders for residential sites and REIT activity. “Apart from S-REIT activity and developers participating in residential GLS tenders, the investment sales market is generally limited to transactions under $200 million,” says Galven Tan, CEO of Knight Frank Singapore.
Despite the smaller deal sizes, investor demand remains resilient, says Tan. Knight Frank estimates that real estate investment sales for the full year of 2025 will be at the higher end of their forecast range of $27 billion to $29 billion.