Singapore property investment sales reach S$34.1 billion in 2025, highest in 8 years
Savills expects 2026 figure to be on a par, amid lower financing costs, asking prices and opportunities for asset repositioning
[SINGAPORE] The real estate investment market ended 2025 on a high as total investment sales hit S$34.12 billion, up 27 per cent from the previous year, said Savills Singapore in a report on Thursday (Jan 29).
The latest figure represents the highest annual investment sales total since 2017, when volumes reached S$35.16 billion, and reflects broad-based growth across both public and private sectors.
Public-sector investment sales jumped 32.3 per cent year on year to S$11.6 billion, boosted by a rise in state tenders awarded from 20 in 2024 to 30 in 2025.
Meanwhile, private-sector investment sales rose 24.3 per cent on the year to S$22.52 billion, supported by renewed activity in the high-end residential market, active Singapore real estate investment trust (Reit) listings and several large-scale deals.
Fourth-quarter figures compiled by Savills showed that total investment sales rose 44.4 per cent on the year to S$10.97 billion, from S$7.6 billion. On a quarterly basis, total investment sales declined 3.3 per cent.
Private sales chalked up S$7.53 billion in value, up 4.5 per cent quarter on quarter (qoq), driven by several large transactions despite a slight dip in the total number of deals to 106 in Q4.
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Jeremy Lake, managing director for investment sales and capital markets at Savills Singapore, said: “The sharp drop in interest rates in 2025 was a game changer for the private investment sales market, which had been plagued by a large ‘price gap’ for the last few years.”
Pointing to all-in financing costs falling to below net property yields for all asset classes, he added: “This has stirred buyer activity, which coincides nicely with ‘seller fatigue’ among some owners. The price gap has narrowed to a point where deals can be closed, which will lead to a rebound in private investment sales in 2026.”
Savills expects investment sales to maintain at about S$34 billion, with office and retail assets as well as properties with redevelopment potential performing better.
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Residential sector
Residential sales chalked up S$4.42 billion in Q4, accounting for the largest share of total investment sales at 40.3 per cent, though transaction value fell 13.7 per cent on the quarter.
The decline was mainly driven by residential investment sales in the private sector, which fell 37.4 per cent qoq to S$1.33 billion, reflecting a moderation in luxury home transactions above S$10 million.
Still, high-end residential sales, particularly of landed properties, remained stronger than in the first half of 2025, suggesting a rebound supported by lower borrowing costs and improving buyer sentiment, said Savills.
The priciest landed home sold in Q4 was a Good Class Bungalow (GCB) in Peirce Road, which went for S$148 million, or S$1,840 per square foot (psf). Nine other GCBs were sold in the quarter, bringing the total to 10 – the highest quarterly tally in four years.
For the full year, Savills data showed 25 GCB deals worth S$1.12 billion, on a par with the 26 deals totalling S$1.15 billion in 2024.
Commercial sector
On the commercial front, investment sales totalled S$3.45 billion, up 31.1 per cent from S$2.64 billion in the preceding quarter. Its share of total investment sales rose to 31.5 per cent.
The largest deal in Q4 – and notably the biggest across all sectors in both private and public markets – was Keppel Reit’s acquisition of a one-third interest in Marina Bay Financial Centre Tower 3 for S$1.45 billion, or about S$3,268 psf.
Other notable deals included the S$809 million acquisition of The Clementi Mall by an entity linked to The Elegant Group, and Lendlease Reit’s purchase of a 70 per cent stake in PLQ Mall for S$619.5 million, or about S$2,789 psf.
Conversely, investment activity in strata-titled units and shophouses remained subdued, amid limited availability of quality assets for sale and ongoing mismatch between buyer and seller price expectations.
Industrial sector
The industrial sector accounted for 19.4 per cent of total investment sales in Q4, raking in S$2.13 billion – almost double the S$1.07 billion recorded in the preceding quarter.
“Industrial Reits remained active, pursuing opportunistic transactions aimed at enhancing portfolio quality, optimising balance sheets and positioning for long-term growth,” said Savills. Deals involving these Reits totalled S$1.27 billion.
The largest deal was CapitaLand Ascendas Reit’s acquisition of three industrial properties for S$532.6 million (excluding estimated upfront land and enhancement premiums) from Vita Partners, a joint venture between Warburg Pincus and Lendlease.
Alan Cheong, Savills Singapore executive director for research and consultancy, said: “With interest rates expected to stay low, asking prices having adjusted downward, and opportunities to refresh tenant mixes through repositioning into newer formats, more assets are now achieving positive carry for prospective buyers.”
He added: “If local equity markets continue to perform well, a rise in property company listings can also be anticipated. Furthermore, as the existing stock of buildings continues to age, redevelopment activity may gather pace, supported by government incentive schemes that encourage urban renewal and asset rejuvenation.”
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