RENEWED TRANSACTION ACTIVITY
Total investment volume rose 31.0% qoq to $9.3 billion (b) in Q3 2025, driven by the residential ($4.1b), followed by commercial ($2.4b) and mixed/others ($1.9b) sectors. Total investment volume in Q1-Q3 2025 was $22.8b, or a 22.7% yoy increase compared to the same period last year (Q1-Q3 2024).
The residential sector volume surged by 127.1% qoq in Q3 2025, of which the bulk (72.7%) was from the public market comprising of seven Government Land Sales (GLS) sites that were awarded. Recent GLS tenders have showed varied results, with stronger developer interest received or even record-breaking prices for certain sites with good locational attributes and pent-up market demand.
Commercial sector volume rose by 40.0% qoq, driven by the sale of CapitaSpring (55% interest) for $1.0b. Other notable office deals include Keppel Land’s acquisition of Jem (office component) for $462 million (m). A major retail transaction was the sale of Kinex mall for $375m, highlighting sustained investor interest for Tier 1 suburban retail malls.
Due to smaller deals recorded in Q3 2025, the industrial sector volume fell by 55.0% qoq. Industrial sales volume was led by CapitaLand Ascendas REIT’s portfolio sale of five properties ($329m) comprising of warehouses and high tech factory. In 2025 YTD, a total of $2.6b worth of industrial deals were transacted, or nearly half (46.2%) of 2024’s total figure ($5.7b), driven by portfolio sales or acquisitions by major landlords.
STEADY INTEREST FOR STRATA OFFICES
Total islandwide strata office volumes (based on caveats lodged as of 2 October) in 2025 YTD has reached around 76.3% of 2024’s full-year volume, driven by a few significant multi-floor deals. According to media reports, the sixth floor of VisionCrest Orchard was sold for $58m in September. Demand for strata office continues to be supported by private wealth, who are less yield sensitive and are looking to invest for long term appreciation and/or for self-use.
