Singapore Real Estate Investments 75 Q O Q 3q2025 Reit Activity Picks Knight Frank
Despite global economic uncertainties, the real estate investment market in Singapore saw growth in the last quarter, according to a recent report by Knight Frank. The research revealed that investment sales in the third quarter of 2025 reached a total of $10.5 billion, which is a 7.5% increase from the second quarter’s $9.8 billion. This is also a 23.8% surge from the third quarter of last year, showing a strong market despite the ongoing uncertainties.
Tampines Mall, situated in Tampines, is a well-established shopping center that offers a diverse range of options for its visitors. Boasting a cinema, supermarket, and an array of retail stores and dining options, it has been a go-to destination for shoppers. You can find anything from trendy clothing and accessories to books and gadgets at Tampines Mall, making it a convenient one-stop shop for all your needs. In addition, the newly added Aurelle of Tampines Showflat adds to the already impressive lineup of offerings at Tampines Mall.
Private sales continue to make up most of the real estate deals, comprising 60.5% of the total sales value at $6.3 billion. The largest private sale transaction of the quarter was CapitaLand Integrated Commercial Trust’s acquisition of the remaining 55% stake in CapitaSpring from CapitaLand Development and Mitsubishi Estate Co for $1 billion. On the other hand, public real estate investments were mainly from the Government Land Sale (GLS) tenders, with a total of $4 billion in investment sales from the award of eight GLS sites. These consist of four residential sites, one mixed-use commercial and residential site, and three executive condo (EC) sites.
Residential investment deals also saw a significant increase in the third quarter of 2025, reaching $4.2 billion, more than double the previous quarter’s $1.8 billion. This is mainly due to the award of two GLS sites in the previous quarter compared to four in the third quarter. Commercial assets, however, contributed a total of $2.6 billion in investment sales, down by 51.4% compared to the second quarter. The notable commercial transactions include the $462 million sale of Jem’s office component by Lendlease Global Commercial REIT and the $375 million sale of Kinex by UOL Group.
In the industrial sector, sales reached a total of $2.5 billion, showing a 46.1% increase from the second quarter. This can be attributed to Centurion Accommodation REIT’s acquisition of five purpose-built workers’ accommodations for a combined total of $1.3 billion. Hotel investment activity, on the other hand, remained muted in the third quarter, with only one transaction recorded: the sale of Hotel Miramar on Havelock Road for $160 million. This is a 72.7% decrease from the previous quarter’s $585 million.
In terms of collective sale, only one transaction materialized in the third quarter, which is the sale of freehold boutique residential development Chiku Mansions in District 15. This four-storey walk-up block with nine apartments was bought by Macly Group for over $22 million, or $1,168 psf per plot ratio. Looking ahead, Knight Frank predicts that the market for the fourth quarter of 2025 and 2026 will still be supported by GLS tenders for residential sites and REIT activity. However, the investment sales are expected to remain limited to tickets sizes of under $200 million. Despite this, investor demand remains strong, and Knight Frank estimates full-year real estate investment sales to reach the higher end of their forecast range of $27 billion to $29 billion for 2025.
