Singapore’s real estate investment market demonstrated resilience in the first half of 2026, with total sales reaching S$31.1b, according to Knight Frank Singapore’s latest report. Despite a 6.2% decline in Q2, the market maintained strong momentum, driven by favourable interest rates and a continued preference for assets offering recurring income.
The commercial sector led the charge, contributing S$8.0b in Q2, bolstered by significant transactions such as CapitaLand Integrated Commercial Trust’s (CICT) acquisition of The Paragon for S$3.9b and the sale of Asia Square Tower 2 to IOI Marina View for S$2.5b. These deals highlight sustained demand for prime office assets, which remain attractive due to limited supply in the Central Business District.
Meanwhile, the residential sector saw a 12.2% increase in investment sales, totalling S$5.3b. Public land sales were pivotal, with five private residential sites and one executive condominium site fetching S$3.2b. Developers showed discernment in their acquisitions, focusing on preferred parcels.
Conversely, the industrial sector experienced a significant slowdown, with sales plummeting 80.8% to S$643.7m. However, notable transactions included CapitaLand Ascendas REIT’s purchase of Hup Hin Building for S$133.9m.
The hospitality sector recorded S$1.2 billion in sales, with the Crowne Plaza Changi Airport’s S$500m sale leading the transactions. Limited investible stock in this sector continues to drive investor interest.
Looking ahead, Knight Frank anticipates that investment activity will remain active in the latter half of 2026, with a focus on high-quality assets. The firm projects total investment sales for the year to reach around S$40b, mirroring 2025 levels.
