Investment sales in Singapore’s real estate market experienced a downturn in Q2 2025, with a 6.8% decline quarter-on-quarter to $4.02b (S$5.47b). This decrease is attributed to ongoing trade and geopolitical tensions, which have heightened investor caution and reduced capital flows into the market, according to Savills’ Singapore Sales & Investment Briefing Q2 2025.
The residential sector, despite a significant 50.5% drop in transaction value to $1.38b (S$1.88b), remained the largest contributor, accounting for 34.4% of total investment sales. The commercial sector saw a sharp decline, with sales plummeting to $289.5m (S$394.6m) from $1.11b (S$1.51b) in the previous quarter, largely due to the absence of big-ticket block transactions.
Conversely, the industrial sector experienced a remarkable surge, with transaction values rising from $168.6m (S$229.8m) in Q1 2025 to $1.06b (S$1.44b) in Q2 2025. This increase was driven by ongoing acquisition and divestment activities by Singapore Real Estate Investment Trusts (S-REITs). Additionally, a significant transaction involving a 50.1% stake in South Beach boosted the mixed-use segment’s market share to 25.2%.
The hospitality sector recorded two serviced residence transactions totalling $278.4m (S$380.0m), marking a 14.2% increase from the previous quarter. However, uncertainty remains high globally, and responses from the US could further impact the market.
Savills maintains its full-year forecast of $14.7b (S$20b) for investment sales, anticipating that it may take another quarter or two for the market to adapt to the current geopolitical climate.
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