Singapore real estate investment sales drop 41.1% to S$5.5b in Q1

The majority of the investments were from public sales.

According to a Knight Frank report, Singapore investment sales activity in the first quarter of 2025 slowed to S$5.5 billion, a 41.1% fall from S$9.3 billion in Q4 2024 but a 16.6% y-o-y gain from S$4.7 billion in Q1 2024.

This was comparatively quiet after a year of constant growth in market activity for most of 2024 with a total sales transaction value of S$29.3 billion.

Here’s more from Knight Frank:

Momentum in 2025 has yet to build up to the levels seen in the last few quarters of 2024 as there is typically a lag between the end of the year and the new year before buyers and investors representing both private wealth families and institutions ramp up activity.

Public sales made up the majority of investment sales in Q1 2025, totalling S$2.8 billion (50.8%) with the award of six Government Land Sale (GLS) sites consisting of five residential sites and one industrial site. Private sales added S$2.7 billion (49.2%) with most being residential deals.

The residential sector recorded a total of S$3.6 billion in both private and public transactions in Q1 2025, a quarterly increase of 45.7% and a yearly growth of 69.4%, where the bulk comprised the five residential GLS sites at Dairy Farm Walk, Tengah Garden Avenue, River Valley Green (Parcel B), Media Circle (Parcel A), and Bayshore Road.

The total sales value for commercial properties amounted to S$1.4 billion, a quarterly increase of 14.5% from the previous quarter, but an 8.0% y-o-y decline from S$1.6 billion in Q1 2024. During the quarter, the significant commercial deals that took place included the acquisition of Northpoint City South Wing for S$1.1 billion by Frasers Centrepoint Trust in March, and the sale of one floor at 20 Collyer Quay for S$91.8 million in March.

However, the sale of industrial properties was in decline. The total sales value of industrial deals was S$230.3 million in Q1 2025, decreasing 93.1% q-o-q and 47.5% y-o-y. The largest industrial deal recorded during the quarter was the sale of a single-user factory located at 23 Lok Yang Way for S$70.1 million in March. Market activity for hospitality properties continued into the start of the year with the sale of Oakwood Studios Singapore sold for S$152.8 million in February, as visitor arrivals remained healthy, trending growth.