Singapore real estate investment sales hit eight-year high

Strong finish caps a robust year for investors

Singapore’s real estate investment market closed 2025 on a strong note, with total investment sales reaching S$34.12 billion, according to Savills Singapore. This represents a 27% increase from 2024 and marks the highest annual transaction volume since 2017, when investment sales totalled S$35.16 billion. The figures underline a clear recovery in investor confidence following several years of subdued activity driven by pricing mismatches and elevated financing costs.

Growth was broad-based across both public and private sectors. Public sector investment sales rose sharply, supported by a higher number of Government Land Sales sites awarded during the year, while private sector transactions were boosted by renewed momentum in the high-end residential market, several large-scale deals and active participation from S-REITs.

Resilience in the fourth quarter

Investment activity remained resilient toward the end of the year, with fourth-quarter transactions approaching S$11 billion. Although this represented a modest quarter-on-quarter decline, it was significantly higher than the same period in 2024. The private sector led the rebound, driven by a handful of sizeable transactions, even as the overall number of deals eased slightly.

Lower financing costs played a pivotal role in sustaining activity among institutional investors, REITs and high-net-worth individuals. Market sentiment was further supported by the fact that the impact of U.S. tariffs proved less disruptive than initially anticipated, helping to stabilise cross-border investment flows.

Residential and commercial assets dominate

Residential properties accounted for the largest share of investment sales in the final quarter, despite a moderation in transaction values following exceptionally strong activity earlier in the year. Demand for high-end and landed homes remained robust, signalling improved buyer sentiment supported by lower borrowing costs.

The commercial sector emerged as the second-largest contributor, recording a sharp quarterly increase in transaction value. The standout deal was Keppel REIT’s acquisition of Hongkong Land’s stake in Marina Bay Financial Centre Tower 3, valued at S$1.45 billion. Retail assets also attracted strong interest, highlighted by the acquisition of The Clementi Mall for S$809 million.

Industrial recovery and 2026 outlook

Industrial investment sales rebounded strongly, nearly doubling from the previous quarter. Industrial REITs were particularly active, accounting for a significant share of transactions as they repositioned portfolios for long-term growth. CapitaLand Ascendas REIT’s purchase of three industrial assets for more than S$530 million exemplified this trend.

Looking ahead, Savills is maintaining its investment sales forecast for 2026 at around S$34 billion, broadly in line with 2025 levels. While interest rates remain a key factor, geopolitical volatility and asset-specific fundamentals are expected to shape market dynamics. Offices, retail properties and assets with redevelopment potential are likely to outperform, supported by adjusted pricing and opportunities for repositioning.

As International Investment experts report: Singapore’s record investment volumes reflect a structural shift back toward real assets amid stabilising financial conditions. With yields once again exceeding financing costs and redevelopment opportunities expanding, the city-state is well positioned to remain a magnet for global real estate capital in 2026.