The real estate market saw strong investment activity in the first quarter of the year. According to a research report published by Knight Frank on April 6, Singapore logged $15.4 billion in real estate investment sales in 1Q2026, rising 10% q-o-q and surging 166.5% y-o-y. The figure sets a new first-quarter record, the firm adds.
Investment activity was supported by a low-interest-rate environment that reduced borrowing costs and narrowed price gaps, as well as active portfolio repositioning by investors. “Together, these factors contributed to an unusually robust start to the year,” Knight Frank’s report states.
Commercial deals were the biggest contributor to investment sales in 1Q2026, totalling $6.3 billion, though the figure represents a 17.2% decline q-o-q. Still, they include the largest deal last quarter: Qatar Investment Authority’s injection of Asia Square Tower 1, a Grade A office building in Marina Bay, into the Singapore Central Private Real Estate Fund, a Singapore office-focused fund managed by Hongkong Land, for approximately $4.1 billion.
Other notable commercial transactions include the reported sale of office building 78 Shenton Way by PGIM Real Estate to Allgreen Properties and Kuok Singapore, at a value between $600 million and $630 million. Retail asset deals also bolstered commercial sales, including Capitaland Integrated Commercial Trust’s (CICT) $428 million divestment of Bukit Panjang Plaza to US-based real estate firm Hines.
Residential deals were the second-largest contributor to 1Q2026 investment sales, at $4.4 billion, though 1.8% lower q-o-q. The bulk of deals comprised government land sales, which totalled $3.2 billion across four private residential sites and one executive condo plot. One of the sites — a mixed-use plot at Hougang Central — was awarded to a consortium comprising CICT, CapitaLand Development and UOL Group for about $1.5 billion in January, making it the second-biggest real estate investment deal overall last quarter.
While the commercial and residential sectors both displayed q-o-q declines last quarter, Knight Frank’s report highlights a pick-up in industrial sector activity. Industrial investment sales totalled $3.1 billion in 1Q2026, jumping over 70% q-o-q. Sales were propelled by the public listing of UI Boustead Reit, which raised about $973.6 million in its initial public offering in March.
Other contributors include CapitaLand Ascendas Reit’s purchase of a cluster of logistics and industrial facilities at 25 Loyang Crescent and a 50% stake in business park Ascent for $749.2 million.
In terms of outlook, Knight Frank’s report highlights that the military conflict in the Middle East, which unfolded in March, has “reintroduced fresh uncertainty”, which may “push some investors back onto the sidelines under clarity prevails”. To that end, capital deployment in the coming months is expected to be selective, shaped by individual preferences across asset classes and yield expectations.
However, the firm points out that sellers may view current conditions as an opportunity. “Given that capital is finite, assets for disposal that can get onto the deal table more quickly than others stand a better chance of accessing the funds available today before these are committed,” the report states.
Source: EdgeProp Singapore (8th April 2026)
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April 15, 2026