Singapore’s real estate investment market experienced a robust start to 2026, with sales reaching a record S$15.4b in the first quarter, according to Knight Frank Singapore. This marks a 10% increase quarter-on-quarter and a staggering 166.5% rise year-on-year. The surge was driven by a low-interest rate environment and strategic portfolio repositioning by investors.
The commercial sector led the charge with S$6.3b in transactions, despite a 17.2% decline from the previous quarter. Noteworthy deals included the sale of 78 Shenton Way and the divestment of Bukit Panjang Plaza. The residential sector saw a slight dip, with sales totalling S$4.4b, whilst the industrial sector witnessed a significant uptick, reaching S$3.1b.
Galven Tan, CEO of Knight Frank Singapore, highlighted the potential for vendors to gain a first-mover advantage by offering assets with favourable attributes. “Amid finite capital and rapidly shifting global conditions, vendors who can offer assets with favourable attributes to the market in a timely manner, can potentially gain first mover advantage and tap into available funds that need to be deployed before these are committed elsewhere,” he stated.
Outbound investment from Singapore also rose, increasing by 7.8% to S$10.3b, as investors sought diversification and stability. However, the ongoing conflict in the Middle East may introduce uncertainties, potentially affecting future investment activities.
Looking ahead, Knight Frank maintains its full-year investment sales forecast at approximately S$30b, despite geopolitical tensions. The current environment may encourage increased activity in mid-sized transactions, supported by favourable interest rates.
