Property investment sales hit $15.4b in Q1 as market strength rolls over from 2025

Knight Frank maintained a full-year forecast at $30b despite geopolitical uncertainties. 

Singapore’s real estate investment market started 2026 strongly, with total investment sales reaching a record $15.4b in the first quarter (Q1) of 2026, up 10.0% quarter on quarter (QoQ) and 166.5% year on year (YoY), according to the Knight Frank Singapore.

According to the Knight Frank’s Investment Market Update Q1 2026 report, investment momentum from the second half of 2025 carried over into 2026, fuelling the strong start.

However, the onset of military conflict in the Middle East in March has introduced fresh uncertainty with Knight Frank highlighting that whilst Singapore’s status as a safe haven for capital is expected to support ongoing investor interest, capital deployment is likely to remain selective, shaped by individual preferences across asset classes and yield expectations.

Vendors who bring assets to market promptly may gain a first-mover advantage, and the relatively favourable interest rate environment may support increased activity within the mid-sized transaction segment, according to the report.

Against this backdrop, Knight Frank maintains its full-year 2026 investment sales forecast at around $30b.

Top Q1 transactions included the injection of Asia Square Tower 1 into the Singapore Central Private Real Estate Fund (SCPREF) managed by Hongkong Land for approximately $4.1b, and the award of a mixed-use commercial and residential GLS parcel at Hougang Avenue 10/Hougang Central for $1.5b.

Residential sales totaled $4.4b, with public land sales contributing $3.2b. Commercial transactions reached $6.3b, led by the sale of 78 Shenton Way for $600m to $630m, Bukit Panjang Plaza for $428m, and a portfolio of 11 retail assets by Mercatus for $281m.

Industrial investment activity rose to $3.1b, driven by the public listing of UI Boustead REIT at $1.3b, CapitaLand Ascendas REIT’s acquisitions at 25 Loyang Crescent and The Ascent at $749.2m, and Standard Chartered Bank’s sale and leaseback of two Changi Business Park assets $183.0m.

The collective sales market recorded two non-residential transactions, namely the rear plot of The Centrepoint sold to Frasers Property for $391.9m, and Kewalram House sold to Soon Hock Enterprise Holding Limited for $120.5m. Outbound investment from Singapore rose 7.8% QOQ to $10.3b, with investors seeking diversification and exposure to stable markets.

Galven Tan, CEO of Knight Frank Singapore, said: “Amidst finite capital and rapidly shifting global conditions, vendors who can offer assets with favourable attributes to the market in a timely manner, can potentially gain first-mover advantage and tap into available funds that need to be deployed before these are committed elsewhere.”