Savills Singapore has revised its 2026 investment sales forecast upwards to S$55–S$60b, a significant increase from the initial S$35–S$40b projection. This adjustment follows a robust performance in the first half of the year, with investment sales reaching S$15.02b in the second quarter alone, nearly tripling the S$5.95b recorded in the same period last year.
The revision underscores strong investor confidence in Singapore’s real estate market, despite ongoing global economic uncertainties. Factors such as lower borrowing costs, capital awaiting deployment, and active capital recycling by Real Estate Investment Trusts (REITs) have bolstered investment activity. The commercial sector, accounting for 53% of total transaction value in Q2 2026, remains a key driver.
Significant transactions include the S$3.9b acquisition of Paragon and the S$2.48b sale of Asia Square Tower 2. Residential investment sales also saw a notable increase of 18.3% quarter-on-quarter, driven by joint ventures in Government Land Sales (GLS) sites. The S$880m collective sale of Loyang Valley marked the largest private residential sale in nearly four years.
Conversely, industrial investment sales experienced a sharp decline of 85.7% quarter-on-quarter, attributed to a lack of major transactions. Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, remarked, “Low borrowing costs, deals in the pipeline, and capital awaiting deployment are setting the conditions for investment sales value to balloon this year.” The momentum from the second half of 2025 is expected to continue throughout 2026.
