Savills Q3 Investment Report states that real estate investment sales nearly doubled from Q2’s S$5.66 billion to S$11.09 billion. This sharp rebound effectively reversed the downward trend observed over the previous three quarters. Cumulatively, investment sales for the first nine months of the year reached S$22.72 billion, a 17.9% increase compared to the same period in 2024.

The state land parcels awarded under the Government Land Sales (GLS) programme help pushed the highest quarterly total for the public sector since Q3/2023, when investment sales reached S$4.16 billion. This consists of seven residential sites, one commercial and residential site and four industrial sites with the Q3 2025’s total proceeds amounting to nearly S$4.15 billion, driving a 241.6% increase QoQ.

In the private sector, real estate investment sales rose by 56.2% QoQ, from S$4.44 billion in Q2/2025 to S$6.94 billion in Q3/2025. This also represents the highest quarterly figure since Q2/2022, when sales reached S$7.16 billion.

By property type, total investment sales in Q3/2025 continued to be dominated by the residential sector, accounting for 45.1% of the market. The commercial sector followed with 22.7%, while other segments contributed smaller shares: industrial at 9.5%, mixed-use at 9.1%, hospitality at 1.4% and others at 12.2%.

Residential investment sales hit nearly S$5.0 billion with a 148.8% surge QoQ over the S$2.01 billion recorded in the previous quarter. Transaction values surged in both the public and private sectors, increasing QoQ by 189.1% and 105.8%, respectively.

Developer participation in tenders for private residential sites awarded in Q3/2025 showed a notable increase, with an average of 6.5 bids per site, significantly higher than the levels seen over the past two years and in the first half of 2025. A substantial rise in new launches, coupled with improved market sentiment supported by falling interest rates, has boosted new home sales in Singapore since Q4/2024. This, along with the release of GLS land parcels in well-located areas, has fuelled developers’ confidence, although they remain cautious.

The Good Class Bungalow (GCB) market improved over the past two quarters, with seven GCBs changing hands in Q3, up from two in Q1 and five in Q2. Buying interests from high-net-worth individuals for this prestige asset class remained strong driven by wealth preservation and long-term capital appreciation, underpinned by Singapore’s safe-haven appeal.

According to caveats lodged with URA realis, the priciest landed home transacted during the quarter was a GCB at 50 Chee Hoon Avenue, which was sold for S$55.0 million (S$3,955 psf based on its 13,906 sq ft of land area). For non-landed properties, the highest-value deals came from two duplex penthouses in the freehold luxury condominium 21 Anderson, each sold for S$52.5 million, translating to S$4,999 psf based on the strata area of 10,452 sq ft.

The sharpest increase came from the commercial sector, recording a total of S$2.52 billion in investment sales, up from S$426.9 million in Q2. This significant growth was mainly driven by a few big-ticket transactions, alongside a revival of investments in strata-titled units and shophouses. Activity in the market was supported by the low-interest rate environment.

The largest deal of the quarter was CapitaLand Integrated Commercial Trust’s acquisition of a 55% interest in the commercial component of CapitaSpring for S$1.045 billion, or S$2,822 psf based on net lettable area (NLA).

Other notable block transactions in the quarter include: Lendlease Global Commercial REIT’s divestment of the office component of Jem in Jurong East for S$462.0 million (S$1,484 psf of NLA), UOL Group’s sale of the freehold Kinex mall, comprising a three-storey retail podium and a basement, in Tanjong Katong for S$375.0 million (S$1,836 psf of NLA), and Lian Huat & Company’s sale of the 11-story Lian Huat Building in Tanjong Pagar for S$90.0 million (S$2,318 psf of gross floor area).

Jeremy Lake, Managing Director of Investment Sales and Capital Markets of Savills Singapore, “Despite the sharp jump in headline investment sales to $11.09 billion in Q3, the actual number of private investment sales excluding related party transactions and REIT IPO deals remains disappointingly low. However, the large drop-in interest rates (SORA) this year bodes well for an increase in open market private investment sales in Q4 2025 and in 2026 assuming a stubborn price gap which exists for many assets can be overcome.”

Alan Cheong, Executive Director, Savills Research & Consultancy: “Capital market conditions have turned around very suddenly and very favourably for investment sales to power ahead for H2/2025. As the upsurge in investment sales in Q3/2025 had already surpassed our earlier forecast of S$20 billion for the full year, we revise our forecast for 2025 to S$28 billion to S$30 billion.”