Singapore Real Estate Investment Market Regains Momentum Full Year Sales Could Hit Around 30 Bil
Singapore’s real estate market saw a surge in investments during the third quarter of 2025, recording its strongest quarterly performance of the year. According to research compiled by Colliers, $10.3 billion in investment sales were tabulated, marking a 35.6% increase from the previous quarter and the highest quarterly figure in over three years.
Savills’ separate report also noted a significant increase in real estate investments, with a total of $11.09 billion recorded for the third quarter. Cumulatively, investment sales for the first nine months of the year totaled $22.72 billion, a 17.9% increase compared to the same period in the previous year.
The surge in sales was largely driven by the awarding of land parcels under the Government Land Sales (GLS) program. In the third quarter, a total of seven residential sites, one commercial and residential site, and four industrial sites were awarded for a total of nearly $4.15 billion, a 242% increase from the previous quarter.
Developer participation in GLS tenders also increased significantly, with an average of 6.5 bids per site in the third quarter. This is a stark contrast to the past two years and the first half of 2025. The pick-up in sales can also be attributed to new launches and falling interest rates, which have boosted new home sales.
Although public transactions continue to underpin real estate investment sales, Jeremy Lake, managing director of investment sales and capital markets at Savills Singapore, expects an increase in private investment sales in the next few months. He notes that the recent drop in interest rates has created a favorable environment for investment sales to flourish, assuming that the persistent price gap for many assets can be bridged.
Alan Cheong, executive director at Savills Research & Consultancy, shares the same optimism, observing that the sudden and significant turnaround in capital market conditions is a positive sign for investment sales to perform well in the second half of 2025. As a result, Savills has upgraded its forecast, projecting total investment sales to range between $28 billion and $30 billion.
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Colliers also has a positive outlook for the market, citing easing interest rates and renewed confidence in public markets as factors that will drive a resurgence in private assets. The firm expects institutional capital to make a comeback, leading to strategies focused on redevelopment, lease optimization, and emerging sectors.
Despite tighter yields, Colliers’ head of research Catherine He notes that Singapore remains a key market for global investors seeking diversification. For the full year, Colliers projects investment sales to range between $29 billion and $32 billion, representing a growth of 10% to 20% year-on-year. Looking ahead to 2026, the firm predicts that emerging asset classes such as co-living and workers’ dormitories will become key drivers of growth.