Singapore's property investment rebound: Implications for commercial real estate investors in 2026

Singapore's property investment market recorded a strong rebound in 2025, with total transaction volumes reaching approximately S$40 billion, the highest level in nearly a decade. This performance stood out against a backdrop of geopolitical tension, uneven global growth and cautious capital markets, reinforcing Singapore's position as a preferred jurisdiction for real estate capital seeking stability and legal certainty.

For commercial real estate investors and developers, the headline figure is notable. In this article, we examine the underlying composition of deals, asset classes and transaction structures for a more meaningful insight into how the market is evolving and what to expect in 2026.

Commercial real estate regains momentum

Commercial assets were a key driver of 2025 investment activity, accounting for roughly S$17 billion in transaction value. Much of this activity was concentrated in prime or strategically located office and retail assets with stable income profiles and strong occupancies.

Notably, several of the year's largest transactions involved partial stake transfers, fund restructurings or platform-level deals, rather than straightforward asset sales. This reflects a more sophisticated deployment of capital, with investors seeking to rebalance portfolios, recycle capital or bring in new partners while retaining exposure to core assets.

From a legal perspective, this trend has increased the importance of careful structuring. Transactions involving minority or majority stakes raise issues around governance, reserved matters, exit rights and alignment with existing financing arrangements. As these structures become more common, documentation quality and clarity around control and decision-making have become critical risk factors.

Government Land Sales and development-led activity

Government Land Sales (GLS) played a significant role in driving overall transaction volumes, particularly in the residential and mixed-use segments. Strong demand at new residential launches encouraged developers to re-enter the land market, with bidding becoming more competitive as the year progressed.

GLS activity is relevant not only for residential developers but also for commercial real estate participants. Mixed-use sites awarded through the GLS programme will add new commercial space over time and influence demand patterns across decentralised office and retail nodes. URA’s continued release of GLS sites suggests a calibrated but steady development pipeline, supporting long-term market depth while managing supply risk.

For developers and consortium bidders, GLS transactions continue to require careful attention to bid structuring, risk allocation and post-award obligations. Where sites involve integrated or mixed-use components, early coordination between development, financing and leasing strategies is essential.

Residential investment and high-end demand

Residential investment volumes rose in 2025, supported by strong buyer demand at new launches and continued interest from high-net-worth individuals. In addition to mass-market projects, the year also saw selective transactions involving luxury residential assets, including good class bungalows and redevelopment sites.

Market commentators have suggested that improved liquidity conditions and lower borrowing costs may continue to support activity at the upper end of the residential market. For commercial real estate investors, this matters insofar as it influences capital allocation decisions, land pricing expectations and redevelopment feasibility in prime districts.

While investment decisions are ultimately driven by fundamentals, sentiment and timing can also influence buyer behaviour. In Singapore, these considerations are sometimes discussed through the lens of the Chinese zodiac calendar, with 2026 being the Year of the Horse; a symbol traditionally associated with movement, momentum and decisive action. In real estate terms, this theme of 'forward motion' often aligns with a more confident buyer mindset and faster-paced market activity, particularly among purchasers ready to act with clarity and purpose.

Consistent with this broader recovery, the collective sales (en bloc) market nonetheless remained relatively subdued, with volumes still well below previous cycle peaks.

Industrial assets: Selective interest rather than broad expansion

Industrial investment activity eased slightly compared with the previous year. Transactions tended to focus on logistics and modern industrial assets aligned with long-term demand drivers, rather than broad-based portfolio acquisitions.

This selective approach reflects greater scrutiny of asset quality, use permissions and adaptability to future operational requirements. For industrial transactions, legal due diligence continues to centre on zoning compliance, technical standards, and restrictions on use or redevelopment.

Looking ahead

While 2025 may represent a cyclical high for transaction volumes, most market observers expect investment activity in 2026 to remain resilient by historical standards. Singapore’s core attributes, including political stability, a transparent legal system and connectivity to regional growth markets, continue to underpin its attractiveness to real estate capital.

For commercial real estate investors and developers, the coming year is likely to place greater emphasis on structure, execution risk and asset fundamentals, rather than purely on pricing momentum. Early engagement across legal, financial and technical disciplines will remain an important factor in navigating transactions efficiently and managing downside risk.

If you would like to discuss how these market developments may affect acquisitions, disposals or redevelopment strategies, our real estate team would be pleased to assist.