ECONOMIC GROWTH EXPECTED TO SLOW
In the first quarter of 2025, Singapore’s economy grew by 3.9% yoy, moderating from 5% yoy growth in the previous quarter. Singapore’s economy is projected to slow down to 0.0%-2.0% yoy, from 4.4% yoy growth in 2024. As of end-June, the 3-month compounded Singapore Overnight Rate Average (3M SORA) has declined to 2.06% from 3.02% at the start of the year. Despite lower interest rates, some investors are expected to adopt a wait-and-see approach amidst economic uncertainty.
AN ENCOURAGING FIRST HALF
Total investment volume rose 8.9% qoq to $7.0 billion (b) in Q2 2025, driven by the residential ($1.8b), followed by industrial ($1.7b) and commercial ($1.6b) sectors. Total investment volume in H1 2025 was $13.4b, or a 27.2% yoy increase compared to the same period last year (H1 2024).
Industrial sector volume surged 620% qoq, led by CapitaLand Ascendas REIT’s acquisition of a portfolio of two properties (data centre and business park) for $700.2 million (m). Other notable industrial deals include Mapletree Industrial Trust’s portfolio sale of three properties (business parks and high-tech factory) for $535.3m to Brookfield Asset Management. Investors remain keen in industrial assets, especially new economy assets such as data centres and life science assets.
The commercial sector recorded a 3% qoq increase in volume, driven by the privatisation of Paragon Real Estate Investment Trust (Reit), which owns Paragon and The Clementi Mall.
Supported by investor confidence in the hospitality sector, hospitality investment sales volume increased by 218% qoq. A flurry of deals were transacted in Q2 2025, including Citadines Raffles Place ($280m), Momentus Serviced Residences Novena ($100m), 21 Carpenter ($100m) and Duxton Reserve ($80m).
Industrial sector volume surged 620% qoq, led by CapitaLand Ascendas REIT’s acquisition of a portfolio of two properties (data centre and business park) for $700.2 million (m). Other notable industrial deals include Mapletree Industrial Trust’s portfolio sale of three properties (business parks and high-tech factory) for $535.3m to Brookfield Asset Management. Investors remain keen in industrial assets, especially new economy assets such as data centres and life science assets.
The commercial sector recorded a 3% qoq increase in volume, driven by the privatisation of Paragon Real Estate Investment Trust (Reit), which owns Paragon and The Clementi Mall.
Supported by investor confidence in the hospitality sector, hospitality investment sales volume increased by 218% qoq. A flurry of deals were transacted in Q2 2025, including Citadines Raffles Place ($280m), Momentus Serviced Residences Novena ($100m), 21 Carpenter ($100m) and Duxton Reserve ($80m).
RESURGENCE IN INDUSTRIAL ENBLOC MARKET
Following muted activities in the industrial enbloc market in 2024, a total of two successful industrial enbloc deals were recorded in Q2 2025, namely, Ching Shine Industrial Building for $113.2m and Macpherson Industrial Complex for $103.9m. Both assets are freehold, highlighting keen investor interest in freehold sites which are in limited supply with potential for long-term priceappreciation.
