Knight Frank Singapore’s latest report reveals a cautious start to 2025, with total investment sales reaching S$5.5b in the first quarter. This marks a 41.1% decline from the S$9.3b recorded in Q4 2024, yet a 16.6% increase from Q1 2024’s S$4.7b. Despite the slow start, CEO Galven Tan notes that investor interest remains robust, particularly from private wealth.
Public sales dominated the quarter, accounting for S$2.8b, or 50.8% of total sales, driven by six Government Land Sale (GLS) sites. Private sales contributed S$2.7b, with residential transactions leading the charge. The residential sector saw a 45.7% quarterly increase, totalling S$3.6b, largely due to GLS sites at locations like Dairy Farm Walk and Bayshore Road.
Commercial property sales rose 14.5% from the previous quarter to S$1.4b, though they fell 8.0% year-on-year. Notable transactions included Frasers Centrepoint Trust’s acquisition of Northpoint City South Wing for S$1.1 billion. Conversely, industrial property sales plummeted 93.1% quarter-on-quarter to S$230.3m, with the largest deal being a S$70.1m factory sale at 23 Lok Yang Way.
Outbound investment from Singapore surged to S$6.3b, a 52.0% increase from the previous quarter, spurred by interest rate cuts in late 2024. Looking ahead, Knight Frank anticipates total investment sales for 2025 to range between S$27b and S$30b, mirroring 2024’s S$29.3b. Despite global economic uncertainties, Singapore remains a favoured investment hub for stable returns.
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