Major commercial transactions reinforce investor confidence as capital continues to flow into Singapore.
Savills Singapore has increased its full year investment sales forecast upward from S$35-S$40 billion to S$55-S$60 billion, following a stronger-than-expected first half performance. Investment sales totalled S$15.06 billion in Q2/2026, bringing year-to-date transaction value to more than S$35 billion and sustaining the recovery that began in H2/2025. Notably, investment sales this quarter are substantially higher than the corresponding period last year, nearly three times the S$5.95 billion achieved in Q2/2025.
The upward revision reflects resilient investor confidence despite ongoing geopolitical and economic uncertainty. Lower borrowing costs, capital awaiting deployment, active capital recycling by REITs and continued developer demand for residential land have combined to support investment activity across multiple sectors. The commercial sector remained the largest contributor to investment sales in Q2/2026, accounting for 53% of the total transaction value.
Despite global macroeconomic tensions such as persistent inflationary pressures and interest rate volatility, investor confidence in Singapore’s real estate market remains resilient. Sales were largely driven by REIT-led portfolio restructuring and bolstered by commercial transactions, including the S$3.9 billion acquisition of Paragon, the S$2.48 billion sale of Asia Square Tower 2, S$250 million divestment of Hong Kong-listed Swing By @ Thomson Plaza, the S$467 million sale of White Sands, and S$372 million acquisition of i12 Katong, further reinforced Singapore's position as an attractive destination for real estate capital.
Residential investment sales increased 18.3% quarter-on-quarter (QoQ) from Q1/2026 to account for 35.7% of total investment sales in Q2/2026. In an effort to reduce risk amid elevated macroeconomic conditions, developers adopt a prudent approach by forming joint ventures in their bids for Government Land Sales (GLS) private residential sites. Of the five GLS private residential sites awarded this quarter, four sites were secured by developer consortiums. Nevertheless, winning bids for these GLS sites continue to set record highs on a per square foot per plot ratio basis.
In the private residential market, the S$880 million collective sale of Loyang Valley, acquired by a consortium led by SingHaiyi Group, stood out as the largest private residential collective sale in nearly four years. Another notable sale is of a Good Class Bungalow (GCB) on Nassim Road for S$64.9 million, the most expensive high-end residential sale of the quarter and one of the highest land rates recorded for a GCB.
Conversely, industrial investment sales weakened sharply, dropping 85.7% QoQ to S$469 million: the decline is attributed to a lack of major portfolio and big-ticket transactions that boosted volumes in Q1/2026. Within the private sector, only seven transactions were valued at S$10 million and above: five of these involved freehold properties, highlighting investor preference for longer land tenure assets. Notable transactions include Tuas Avenue 5 for S$133.9 million and the freehold Fujifilm Building at New Industrial Road for S$71 million.
Alan Cheong, Executive Director, Research & Consultancy, Savills Singapore, comments: “Low borrowing costs, deals in the pipeline and capital awaiting deployment are setting the conditions for investment sales value to balloon this year. While the exceptional level of transactions recorded in the first quarter is unlikely to be repeated, the momentum built since the second half of 2025 is expected to continue through the rest of 2026.”
Figure 1: Investment Sales Transaction Values, Q1/2021-Q2/2026
Figure 2: Investment Sales Transaction Volume by Property Type, Q2/2026