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From Colliers

Investment sales hit $11.5b as commercial deals explode 277%

Major retail transactions at Clementi Mall and PLQ Mall drove the quarterly commercial rebound.

Singapore’s commercial property investment rebounded sharply in the final quarter of 2025, with sales surging 277.3% year-on-year (YoY) as total investment activity climbed to $11.5b, according to Colliers.

The rebound in commercial investment was underpinned by major office and retail deals, including a 33% stake in MBFC Tower 3 and retail transactions at Clementi Mall and PLQ Mall.

Beyond commercial assets, Singapore’s investment sales mix shifted noticeably in the quarter, reflecting a broader-based recovery across sectors.

Data for the fourth quarter showed residential properties accounted for the largest share of investment activity at 39.2%, followed by commercial assets and industrial properties at 27.0% and 18.4%, respectively.

Residential investment grew 95.3% YoY to $4.51b, boosted by six Government Land Sales (GLS) sites including strategic plots at the Greater Southern Waterfront and Hougang Central.

Secondary private market transactions, such as Good Class Bungalow deals and land parcels for redevelopment, also supported demand.

Industrial investment fell 13% YoY to $2.12b. The sector’s performance reflects sustained institutional appetite despite shorter land tenure, according to Colliers.

Mixed-use assets accounted for 13.0% of activity, whilst hospitality remained inactive.

Overall, total investment sales for the quarter reached $11.5b, up 64.5% YoY, signalling improving market sentiment as Singapore’s real estate cycle heads into 2026.

Colliers noted that lower borrowing costs and widened yield spreads have bolstered investment appeal, keeping both private and institutional capital engaged.

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