Real estate shrugs off Q3 slump as investment sales hit record $47.52b

Public-sector deals rose 51.5% while private real estate investment fell 42.5% in Q3.

Real estate investment sales fell 21.2% quarter-on-quarter (QoQ) to $12.06b in the third quarter (Q3) of 2026 following two quarters of strong performance, according to Savills Singapore.

Even with Q3’s slowdown, total investment sales in the first nine months of the year reached $47.52b, surpassing all previous full-year totals since market tracking began in 2008.

Q3 transaction value also remained 6% above the $11.38b recorded in Q3 2025.

Transaction momentum moderated in Q3 amidst global economic uncertainty, the prolonged Middle East conflict, and an unclear interest rate outlook.

Private-sector investment sales contracted sharply by 42.5% to $6.81b, weighed down by the absence of major big-ticket transactions.

Residential assets overtook commercial assets to become the largest contributor to investment sales, accounting for 40.7% of total transaction value.

Despite its leading share, residential investment sales also declined 9.9% QoQ to $4.91b, largely due to fewer residential Government Land Sales (GLS) site awards and slower home sales during the Hungry Ghost Month.

Meanwhile, commercial investment sales fell to $2.02b from $8.04b in Q2, and account for 16.7% of total sales, down from 52.5%.

In contrast, public-sector investment sales rose 51.5% to $5.26b.
The GLS sites at Bayshore Drive ($2.13b) and the GLS site at New Upper Changi Road ($1.43b) accounted for 67.6% of the public-sector sales this quarter.

“Whilst investment sales have reached record levels this year, the divergence between public- and private-sector activity has become more apparent,” said Alan Cheong, executive director for research and consultancy at Savills.

“Government land sales continue to support transaction volumes, but the absence of major private-sector deals suggests that investment momentum is becoming increasingly uneven,” he added.

But with the completion of major transactions uncertain, Savills expects a calmer fourth quarter for real estate investments.

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