Is the Market Quietly Heating Up Again?

Despite a cautious economic backdrop, Singapore’s property investment sales surged to S$10.5 billion in Q3 2025, according to Business Times and Knight Frank. This represents a 23.8 percent year-on-year increase, surpassing earlier expectations. The growth was driven mainly by Government Land Sales (GLS) and renewed REIT acquisition activity.

Knight Frank now projects that total investment volumes for 2025 could reach the upper range of S$27 billion to S$29 billion, showing that institutional confidence remains intact even as individual sentiment stays cautious.

👉 Rozi’s Field Note: Big players aren’t running from the market. They’re repositioning, preparing for where the next wave of growth will come from.

Who’s Actually Doing the Buying? Why?

Reports from SBR and EdgeProp reveal that private deals made up the majority of transactions, amounting to about S$6.3 billion. The residential sector contributed roughly S$4.2 billion, fuelled by strong GLS bidding, while industrial assets recorded close to S$2.5 billion, reflecting investors’ preference for stable yields.

Meanwhile, commercial activity fell by about 51 percent quarter-on-quarter, and hospitality investments dropped by 72 percent to only S$160 million. The message is clear: investors are shifting toward assets that offer predictable income and long-term certainty rather than chasing short-term cyclical plays.

👉 Rozi’s Field Note: When capital flows into “boring but stable” assets, it tells us something yield stability is more prized than glamour right now.

Are REITs Signalling the Turn?

REITs have quietly re-entered acquisition mode, encouraged by easing interest-rate expectations and more favourable financing spreads. Analysts note that Singapore REITs continue to trade at about a 17 percent discount to book value, yet they are showing improved occupancy and rental reversions, especially across office and retail segments.

Office REITs are gaining from rising rents and strong occupancy as tenants pursue a “flight-to-quality.” Retail REITs are experiencing higher take-up and falling vacancy in Orchard Road and downtown areas, while industrial REITs are capitalising on the steady demand for logistics and data-centre assets.

👉 Rozi’s Field Note: Institutional players are usually the first to move when interest-rate tides turn. The rest of the market catches on later.

Is Quality Becoming the New Quantity?

Market watchers like JLL and 99.co report that CBD Grade A office rents rose about 0.5 percent quarter-on-quarter, with vacancies dipping below 5 percent. Suburban retail assets have held firm too, supported by limited new supply and resilient footfall. These figures reinforce one consistent pattern, well-located, income-producing assets continue to outperform the wider market.

👉 Rozi’s Field Note: “Flight-to-quality” isn’t just a buzzword. It’s a survival strategy for tenants, landlords and investors alike.

What Lies Ahead? Confidence or Over-Confidence?

While the S$10.5 billion figure paints an optimistic picture, analysts expect that the next few quarters will bring more selective behaviour. Competition for GLS plots will likely intensify, development margins could narrow, and valuations might come under pressure if rates shift again.

Even so, both Knight Frank and SBR foresee 2025 closing near the upper end of forecasts, reaffirming Singapore’s status as a safe harbour for long-term capital in Asia.

👉 Rozi’s Field Note: Smart investors are active, but they’re not over-leveraging. The key lesson? Stay calm, stay liquid and stay strategic.

What Does All This Mean for the Rest of Us?

The current surge in investment activity suggests a market that is maturing, not overheating. Developers, REITs and funds are positioning for the long haul rather than speculating for short-term gains.

For homeowners and aspiring investors, the takeaway is simple: long-term conviction beats short-term noise. Singapore continues to attract capital not because it is cheap, but because it is trusted.

👉 Rozi’s Field Note: Even in uncertain times, clarity and confidence win. The professionals know it, and so should the rest of us.