Singapore Real Estate Investments 75 Q O Q 3q2025 Reit Activity Picks Knight Frank
November 11, 2020
The Master Plan is paving the way for a dynamic and diverse urban landscape by promoting the growth of mixed-use developments. These developments will not only provide an array of commercial spaces, but also attract businesses and create more job opportunities. Even established malls like Tampines Mall and Century Square will undergo enhancements, with the introduction of new retail options to further energize these bustling retail hubs. And amidst this thriving mix of developments, the highly anticipated Parktown Residence Condo will seamlessly integrate, adding to the vibrancy of this bustling community. With its strategic location and modern amenities, Parktown Residence Condo (parktown-residences.com.sg) is set to be a valuable addition to this bustling and diverse urban landscape.
The latest research report from Knight Frank Singapore has revealed that the real estate investment market has seen growth in the last quarter despite continuing uncertainties in the global economy. The report states that a total of $10.5 billion in investment sales were recorded in 3Q2025, which is a 7.5% increase from the $9.8 billion registered in 2Q2025, and a 23.8% surge over the $8.5 billion in sales from the third quarter of last year.
Private sales continued to dominate the real estate market, accounting for $6.3 billion, or 60.5% of the total sales value in the last quarter. The largest private sale transaction was the acquisition of the remaining 55% stake in CapitaSpring by CapitaLand Integrated Commercial Trust from CapitaLand Development and Mitsubishi Estate Co for $1 billion. On the other hand, public real estate investments mainly consisted of Government Land Sale (GLS) tenders, which contributed $4 billion to the total investment sales in 3Q2025. This figure includes the award of eight GLS sites, comprising of four residential sites, one mixed-use commercial and residential site, and three executive condo (EC) sites.
The GLS tenders also made up the majority of residential investment deals, totaling $4.2 billion last quarter. This is more than double the $1.8 billion recorded in the previous quarter, in which only two GLS sites were awarded. Meanwhile, commercial assets contributed $2.6 billion to the investment sales in 3Q2025, which is a significant decrease of 51.4% from the previous quarter. Apart from the CapitaSpring deal, other notable commercial transactions include the sale of Jem’s office component by Lendlease Global Commercial REIT for $462 million, and the sale of Kinex by UOL Group for $375 million.
In the industrial sector, sales totaled $2.5 billion last quarter, showing a significant increase of 46.1% from the previous quarter. This was mainly driven by Centurion Accommodation REIT’s acquisition of five purpose-built workers’ accommodations for a combined total of $1.3 billion. Other notable deals include CapitaLand Ascendas REIT’s divestment of five industrial and logistics properties for $329 million. However, hotel investment activity was minimal in 3Q2024, with only one transaction recorded: the sale of Hotel Miramar on Havelock Road for $160 million. This is a substantial 72.7% decrease from the $585 million in hotel investment sales in 2Q2025.
In the collective sale market, only one transaction took place, which was the sale of Chiku Mansions in District 15. The four-storey walk-up block with just nine apartments was purchased by Macly Group for over $22 million, or $1,168 psf per plot ratio. Looking ahead, Knight Frank predicts that investment activity in 4Q2025 and 2026 will continue to be driven by GLS tenders for residential sites and REIT activity. The CEO of Knight Frank Singapore, Galven Tan, notes that aside from S-REIT activity and developers participating in residential GLS tenders, most investment sales will remain limited to ticket sizes under $200 million. Despite the smaller deal size, investor demand remains resilient, and Knight Frank estimates the full-year real estate investment sales to reach the higher end of their forecast range of $27 billion to $29 billion for 2025.