GLS sales, commercial deals lift Singapore 2025 property investment to $40 billion

SINGAPORE – Property investment activity in Singapore hit a new eight-year high of $40 billion in 2025, fuelled by robust participation in Government Land Sales (GLS) tenders and more commercial transactions as interest rates eased amid geopolitical and economic uncertainty.

This surpassed the previous peak in 2017, when $35.5 billion was recorded due to a collective-sales boom and strong institutional demand.

It also exceeded Knight Frank Singapore’s forecast of $27 billion to $30 billion, the real estate consultant said in a report dated Jan 8.

“2025 was a year of relative political and economic volatility and uncertainty, yet investment sales in Singapore surged to a new record. Investors committed to deals as interest rates eased, a testament to Singapore’s continued position as the Switzerland of the East,” said Mr Galven Tan, chief executive of Knight Frank Singapore.

“Given the global uncertainties and trade tensions that weighed on the economy throughout the year, it was serendipity that led investment funds to be deployed,” Knight Frank said, adding that total investment sales in 2026 are expected to remain robust at about $30 billion.

On an annual basis, total investment activity jumped 36.8 per cent to $40 billion in 2025, with commercial investment deals accounting for $17 billion. Residential transactions accounted for $14.6 billion, industrial deals accounted for $6.2 billion, and the remaining $2.2 billion came from mixed development, hotel and other transactions.

Significant commercial investment transactions included Hongkong Land Holdings’ $3.9 billion transfer of its stakes in Marina Bay Financial Centre Towers 1 and 2 and One Raffles Quay

into a Singapore-based private real estate fund

.

Other notable transactions included Keppel REIT’s acquisition of a one-third stake

in Marina Bay Financial Centre Tower 3

for $1.45 billion; Lendlease Global Commercial REIT’s 70 per cent stake purchase of Paya Lebar Quarter Mall, which has an agreed property value of $885 million; and the sale of The Clementi Mall to the Elegant Group for $809 million.

“These deals reflect sustained investor confidence in strategically located, income-generating commercial assets with strong occupancies,” Knight Frank said.

In the residential sector, investment deals totalled $14.6 billion, a 20.8 per cent increase from 2024.

Spurred by strong homebuyer demand at new launches, more developers began participating in residential GLS tenders, with top bids becoming more competitive as the year progressed, Knight Frank noted.

In the fourth quarter of 2025, residential state land tenders contributed $3.1 billion, or more than 70 per cent of the residential sector’s overall transaction value, which came to $4.3 billion, compared with $4.4 billion in the third quarter.

Six GLS sites totalling $4.6 billion were awarded in the fourth quarter,

including the first residential site in the former Keppel Club area

at $918.3 million, and an integrated mixed-use site in Hougang Central that fetched $1.5 billion, said Ms Catherine He, head of research at Colliers Singapore.

In addition, 10 good class bungalows were transacted, with one in Peirce Road going for $148 million, and a land plot in the Marina Square complex transacted at $99.1 million, as part of a residential redevelopment there.

“The strong investment momentum is likely to spill over to the luxury market, with buyers, especially ultra-high net worth individuals, benefiting from higher liquidity in the capital markets and lower borrowing costs,” she added.

Meanwhile, the collective sales market remained subdued in the fourth quarter, with just one deal. Starpoint, a nine-unit project, was sold for $55.3 million to education service provider Stalford International Education in November. This brought the total in 2025 to five deals (three residential and two industrial developments), up from four in 2024.  

Home replacement costs remain a major deterrent to collective sales, Knight Frank said.

“Private home prices have risen 38 per cent in the past five years, making it difficult for en bloc sellers to secure comparable replacement homes. Higher stamp duties further discourage foreigners and permanent residents, as selling would expose them to significant taxes when buying a replacement property,” the consultancy said.

In the industrial sector, transaction values dipped to $6.2 billion in 2025, from $6.6 billion in 2024. Among the biggest transactions were CapitaLand Ascendas REIT’s

acquisition of three industrial and logistics properties

for $565.8 million, as well as ESR-REIT’s divestment of eight Singapore industrial assets for $338.1 million.