Mapletree Industrial Trust (MIT) divested three industrial properties, namely The Strategy, The Synergy and the Woodlands Central Cluster, to Brookfield Asset Management for S$280M, S$120.1M and S$135.2M, respectively. Both The Strategy and The Synergy are located within the International Business Park in Jurong East.

CapitaLand Ascendas REIT (CLAR) acquired two industrial assets: a six-storey data centre at 9 Tai Seng Drive for S$455.2M and a business park property at 5 Science Park Drive for S$245M.

Overall, real estate investment sales recorded a mixed performance in Q2/2025. Total real estate investment sales declined 6.8% quarter-on-quarter (QoQ) for a third consecutive quarter, from S$5.87B in Q1 to S$5.47B in Q2. This was due to a sharp drop in public sector deals. Notably, transaction values in the public sector were more than halved – from S$2.79B in Q1 to S$1.21B in Q2. This was largely due to the significantly reduced number of private residential land parcels successfully awarded under the GLS Programme, which decreased from five in Q1 to just two in Q2.

However, the private sector exhibited resilience, recording a robust 38.2% QoQ increase in transaction value, rising from S$3.08B in Q1 to S$4.26B in Q2. The growth was driven by several high-value deals, including City Developments Limited’s (CDL) divestment of its 50.1% interest in the South Beach development, CLAR’s acquisition of two industrial properties, and MIT’s divestment of three industrial properties.

Residential investment sales dropped sharply by 50.5% QoQ to S$1.88B. Transaction values declined in both the public and private sectors by 62.7% and 17.4% respectively.

In the public sector, two 99-year private residential land parcels - Lentor Gardens and Lakeside Drive - were awarded under the GLS Programme in the second quarter. The Lentor Gardens site was awarded to Chinese developer Kingsford Group at S$429.2M. The Lakeside Drive site, which is zoned for residential use with commercial at the first storey, was awarded to CDL for S$608M.

The private sector saw a moderation in investment sales of landed houses and non-landed residential units priced at S$10M or more. Compared to the previous quarter, the number of such transactions fell by 23.8% to 48 deals, while the total transaction value decreased by 12.6% to S$843.6M. The most expensive landed house that changed hands in the quarter was a Good Class Bungalow (GCB) at 12 Joan Road in the Caldecott Hill Estate, which was sold for S$58M. Among non-landed properties, the highest-value deal involved a 5,285 sq ft, five-bedroom unit on the 55th floor of Skywaters Residences, which was sold for S$30.9M.

Despite these headline deals, overall sentiment remains measured. With all in borrowing costs for well-rated borrowers now around 3% – which is below yields for commercial, retail and industrial assets – the fundamentals for a recovery are aligning. However, macroeconomic uncertainties, including trade policy shifts and inflation volatility, continue to cast a shadow over investor decision-making.

Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, added, “Although interest rates in Singapore have come down sharply – with borrowing costs for high-quality borrowers now comparable to commercial property yields – lingering macro uncertainties have kept many investors in a wait-and-see mode.

While easing global trade tensions could support sentiment, the timeline for rates to fall to a level that meaningfully stimulates broad-based activity remains unclear. Unlike in other markets, the impact on Singapore real estate may not follow the same pattern, thanks to relatively tight supply and resilient yields in key sectors. Still, we expect investors to take another quarter or two to adjust to the evolving global backdrop. For now, we are keeping our full-year investment sales forecast unchanged at S$20 billion.”

TABLE 2: Top Private Investment Sales, Q2/2025

TABLE 1: Top Investment Sales in the Public Sector, Q2/2025

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