Savills lifts 2026 forecast as H1 property sales top $35b

Major commercial transactions drive a potential record year for real estate investment.

Singapore’s real estate investment market is on track for a strong 2026 after more than $35b in transactions were recorded in the first half of the year, prompting Savills Singapore to raise its full-year investment sales forecast by $15b to $20b.

The consultancy now expects investment sales to reach $55b to $60b in 2026, up from its previous forecast of $35b to $40b.

Investment sales reached $15.02b in the second quarter (Q2) of 2026, nearly three times the $5.95b recorded in the same quarter last year. Commercial transactions accounted for 53% of the quarter’s total.

Major deals included the $3.9b acquisition of Paragon, the $2.48b sale of Asia Square Tower 2, the $467m sale of White Sands and the $372m acquisition of i12 Katong.

Savills said lower borrowing costs, capital awaiting deployment, REIT portfolio restructuring and continued developer demand for residential land supported investment activity in the quarter.

Residential investment sales rose 18.3% quarter-on-quarter (QoQ) in Q2 and accounted for 35.7% of total investment sales.

Developers also continued to share risk through joint ventures when bidding for Government Land Sales sites. Four of the five private residential GLS sites awarded during the quarter were secured by developer consortiums, according to Savills.

The $880m collective sale of Loyang Valley, acquired by a consortium led by SingHaiyi Group, was the largest private residential collective sale in nearly four years.

A $64.9m Good Class Bungalow on Nassim Road was the quarter’s most expensive high-end residential sale.

Industrial investment sales, however, fell 85.7% QoQ to $469m, after the previous quarter was boosted by major portfolio and large-ticket transactions.

Only seven private-sector industrial transactions worth $10m or more were recorded in Q2. Five involved freehold properties.

Notable deals included the $133.9m sale of Tuas Avenue 5 and the $71m sale of the freehold Fujifilm Building on New Industrial Road.

“Low borrowing costs, deals in the pipeline and capital awaiting deployment are setting the conditions for investment sales value to balloon this year,” said Alan Cheong, executive director of research and consultancy at Savills Singapore.

“Whilst the exceptional level of transactions recorded in the first quarter is unlikely to be repeated, the momentum built since the second half of 2025 is expected to continue through the rest of 2026.”

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