The Singaporean investment sales landscape demonstrated exceptional vitality during the third quarter of 2025, witnessing a substantial increase in overall transactions. The total value of investment sales reached an impressive $11.09 billion, representing a remarkable 96% quarter-on-quarter growth. This strong performance has significantly elevated the year-to-date sales for the first nine months of 2025 to $22.72 billion, a 17.9% improvement compared to the same period in the preceding year. This positive trend underscores a burgeoning confidence within the market, driven by both governmental initiatives and private sector engagement.
A major contributor to this growth was the public sector, primarily through the Government Land Sales (GLS) program, which accounted for approximately $4.15 billion in sales. This figure marks an extraordinary 241.6% rise from the second quarter and signifies the highest public sector sales recorded since the third quarter of 2023. Concurrently, private sector transactions also exhibited considerable momentum, escalating by 56.2% quarter-on-quarter to $6.94 billion, reaching its peak since the second quarter of 2022. Residential properties emerged as the dominant asset type, constituting 45.1% of third-quarter sales with roughly $5.0 billion, followed by commercial assets at 22.7% and industrial and mixed-use properties contributing 9.5% and 9.1% respectively. The improved confidence among developers, supported by an expanding pipeline of new launches and a decrease in the Singapore Overnight Rate Average (SORA), further propelled the market's upward trajectory, with private residential GLS sites attracting an average of 6.5 bids per site.
Despite the widespread recovery, Savills notes that open-market private deals, excluding related-party transactions and REIT IPOs, remain relatively subdued, suggesting that the broader market rebound is still somewhat uneven. Nonetheless, several prominent transactions characterized the quarter, including CapitaLand Integrated Commercial Trust's acquisition of a 55% stake in CapitaSpring's commercial segment for $1.045 billion. Looking ahead, in light of the robust third-quarter results, Savills has revised its full-year investment sales projection for 2025 upward, now anticipating figures between $28 billion and $30 billion, a significant increase from its earlier estimate of $20 billion. The firm anticipates that the recent decline in SORA will continue to stimulate market activity throughout the fourth quarter of 2025 and into 2026, provided that bid-ask spreads continue to narrow and overall market confidence remains stable.
The remarkable growth in Singapore's investment sales market reflects a resilient economy and strong investor confidence. This upward trend highlights the nation's appeal as a prime destination for real estate investment, driven by strategic government policies and a dynamic private sector. Such positive indicators not only promise continued economic vitality but also foster an environment of progress and opportunity for all stakeholders.