Savills expects up to $40b Singapore investment sales boom in 2026

Low rates and capital inflows drove the stronger outlook across key property sectors in 2026.

Savills Singapore has raised its 2026 investment sales forecast to $35b to $40b from the initial $34b projection, citing low interest rates and continued capital inflows into Singapore, with investment activity starting the year on a firm footing.

Total investment sales reached $11.48b in the first quarter (Q1) of 2026, up 3.5% quarter on quarter (QoQ) and 95.4% year on year (YoY) marking the highest quarterly level since the third quarter of 2013, when sales reached $13.84b.

Savills said activity was supported by developers replenishing land banks amidst stable residential demand, alongside increased participation from private funds and family offices. Capital recycling by developers, REITs and funds also supported liquidity in the market.

Commercial investment sales totalled $2.04b in Q1 2026, down 42.6% from the previous quarter.

Savills attributed the decline to a higher base in the fourth quarter of 2025, which included the acquisition of a one-third stake in Marina Bay Financial Centre Tower 3 by Keppel REIT.

Despite the quarterly decline, Savills said office and retail assets continued to show stable occupancy and income profiles, supported by lower financing costs and narrower pricing gaps between buyers and sellers.

Key transactions in the office and retail segment included the sale of 78 Shenton Way for $600m to $630m, and Bukit Panjang Plaza for $428m to US asset manager Hines.

The industrial sector recorded $2.94b in investment sales, up 38.1% QoQ with the quarter also seeing the listing of UI Boustead REIT, with an initial portfolio of 23 logistics, industrial and business park assets across Singapore and Japan. Singapore assets in the portfolio were valued at about $1.36b.

The mixed-use sector posted $1.89b in investment sales, more than double the previous quarter.

Major deals included the $1.50b Government Land Sales site at Hougang Central awarded to a CapitaLand–UOL consortium, and Frasers Property’s $391.9m acquisition of The Centrepoint’s rear block through a collective sale.

Savills said private-sector office and retail assets are expected to remain resilient in 2026, supported by stable income profiles and improved investor sentiment.