Singapore investment sales expected to hit up to S$30b this year

The momentum is likely to continue into 2026.

A confluence of events in Q3/2025 led to a flurry of investment activities in the real estate market, Savills noted in a recent report. Starting with the 3-month Singapore Overnight Rate Average falling below 2% on 7th July and then Straits Times Index breaking 4,000 points on closing on 2nd July and then maintaining its trendline climb thereafter, confidence amongst corporate investors returned with a bang.

“Interest rate sensitive stocks like REITs became active again. On the equity front, although many of the real estate entities had planned their pipeline of acquisitions or IPOs way before the bull run, the revival of the moribund stock market pushed forward or restarted their agendas on the public markets,” the report added.

Here’s more from Savills:

For 2026, the risk for the investment market may come from the full impact of the lagged effects from the Liberation Day tariffs, the migration of consumption and industrial activities to the region, and investors’ concern about the impact of Generative Artificial Intelligence on the headcount requirements by companies adopting AI for their processes.

However, we believe that for next year, the premier grade of office buildings, particularly those in the AAA category and prime CBD and suburban malls, should be inured from these concerns for now. Demand for space by tenants in premier grade investment properties will still be healthy as the strongest and fittest companies are resilient to the storms buffeting the global economy.

With empirical evidence showing strong take-up rates for recent residential launches, the authorities are unlikely to throttle back on the supply of GLS sales sites for private and EC developments in 2026. The bidding amount will likely be higher than those in 2025 as the strong sales shown in this year’s batch of launches are likely to motivate developers to bid higher.

We believe that favourable capital market conditions are likely to continue for the rest of this year and as the upsurge in investment sales in Q3/2025 had already surpassed our earlier forecast of S$20 billion for the full year, we revise our forecast for 2025 to S$28 billion to S$30 billion. For 2026, market conditions are likely to remain positive, and we may see investment sales values equal those this year.