Real estate investments set to pass 2017 peak as H1 hits $35.2b

Commercial deals captured 50.7% of first-half investment volumes.

Singapore’s real estate investment market is expected to surpass pre-pandemic levels in 2026, after investment volumes reached $35.2b in the first half (H1), according to a Cushman & Wakefield report.

The firm said H1 volumes are on track to exceed the 2017 level of $36.8b, supported by declining interest rates, limited supply, and resilient occupier demand.

Moreover, easing financing costs and healthy leasing fundamentals are expected to drive investment and market expansion amidst geopolitical developments, said Wong Xian Yang, Head of Research, Singapore & Southeast Asia, Cushman & Wakefield. 

Commercial investment sales accounted for 50.7% of total investment volumes during the period, up from 23.8% last year.

By sector, office CBD assets accounted for the largest share at 33.7%, followed by residential government land sales at 18.4%, and city retail assets at 12.5%.

The report said Singapore’s office and retail property spreads over the 10-year government bond had exceeded pre-pandemic levels as of the first quarter.

Industrial investment sales also remained on an upward trend. Sales volumes reached $7.1b in 2025, the highest since 2019, whilst H1 is on track to reach about $6b.

The firm attributed the rise to capital recycling, as asset owners divest non-core properties, and continued industrial en bloc activity as developers acquire sites to replenish land banks for strata sales.

Shaun Poh, Executive Director and Head of Capital Markets at Cushman & Wakefield Singapore, said investor activity is becoming more selective, but capital remains available for high-quality assets.

“We continue to see sustained interest from both domestic and international investors targeting well-located commercial assets, particularly in segments where supply remains constrained,” Poh added.