Real estate investment sales rise 36.8% to $40b in 2025

Residential and commercial sectors record increases of 20%, 124.7% YoY, respectively.

Singapore’s real estate investment sales for the entire 2025 reached $40b, or a 36.8% increase year-on-year (YoY), accorrding to a report from Knight Frank.

This surpassed the previous peak in 2017, when $35.5b was recorded during the collective-sales boom and a period of strong institutional demand.

The total investment sales were backed by $13.5b recorded in the fourth quarter (Q4) of 2025, a 23.9% increase QoQ and a 43.7% rise YoY.

Investment sales surged as “investors committed to deals as interest rates eased, a testament to Singapore’s continued position as the Swiss of the East,” said Galven Tan, chief executive officer of Knight Frank.

Broken down, the residential sector posted $14.6b in total investment sales value during the year, a 20% increase YoY.

Public land sales accounted for the bulk of transaction value during Q4, with residential Government Land Sales (GLS) tenders contributing to a cumulative $3.1b.

This comes as a result of strong homebuyer demand, eased interest rates, and the stock exchange encouraged property-related and real estate investment trust (REIT) listings, Knight Frank said.

Commercial investment transactions in Singapore reached $17.0b in 2025, exceeding the previous year by 124.7%.

These deals reflected sustained investor confidence in strategically-located and income-generating commercial assets with strong occupancies, the real estate consultancy said.

In Q4 2025, the higher sales value of $7.2b surpassed both the previous quarter and the last year, which Knight Frank said was anchored by Hongkong Land Holdings’ $3.9b transfer of selected commercial assets into a city-state-based private real estate fund.

Other significant transactions included Keppel REIT’s acquisition of a one-third stake in Marina Bay Financial Centre 3 for $1.45b, Lendlease Global Commercial REIT’s 70% stake purchase of PLQ Mall for $619.5m, and the sale of The Clementi Mall to the Elegant Group for $809m, it added.

Knight Frank noted that the H1 2026 Confirmed List in GLS programme contains 4,575 private residential units, down 150 from the preceding half year. Total potential supply, including the Reserve List, stands at about 9,185 units, broadly unchanged.

Hongkong Land’s Singapore Central Private Real Estate Fund (SCPREF) is expected to have $8b of assets under management upon inception. SCPREF is also touted to be the largest private real estate fund in the city-state.

Following Keppel REIT’s acquisition of an interest in Marina Bay Financial Centre Tower 3, HSBC implemented a deed of termination to end the existing shareholders’ agreement, and entered into a restated agreement with the shareholders of Central Boulevard Development Pte. Ltd.

Whilst sales activity in the industrial sector decreased in Q4 2025, the total value for the year was $6.2b, just under the $6.6b in 2024, Knight Frank said.