Singapore Real Estate Investment Sales Set to Ease to S$35 Billion to S$45 Billion in 2027 After a Record S$55 Billion Year
2026 is on track to be a record year for real estate investment deals in Singapore, with total investment sales projected at about S$55 billion. Savills Singapore now expects the total to ease to between S$35 billion and S$45 billion in 2027. Higher borrowing costs and wider gaps between what buyers and sellers will accept are slowing the largest deals.
Projected 2026 Investment Sales
Savills Forecast for 2027
Three-Month Compounded SORA, 5 Nov
Q3 2026 Sales Estimates
Why the Pace Is Slowing
The clearest sign is Marina One. A S$5.7 billion sale of its commercial component to a new Hongkong Land private fund, which would have been Singapore’s largest single-asset deal, was expected to close in August. By early October, market talk was that it would not go ahead.
Consultants point to two pressures. The US Federal Reserve raised its benchmark rate by 25 basis points in September to a range of 3.75 to 4 per cent, its first increase since 2023. The gap between net yields and financing costs has also narrowed, so buyers are repricing, especially for offices. Some deals have been delayed, and others have drawn few or no bids.
Momentum had already slowed in the third quarter. Excluding government land sales, consultants estimate that investment sales for the first nine months of 2026 were between S$28.8 billion and S$34 billion, but the third quarter alone was only between S$3.8 billion and S$6.9 billion.
The Biggest Deals of the Second Half
| Property | Price (S$ million) | Buyer |
|---|---|---|
| Wheelock Place | 1,100 | Singapore Central Private Real Estate Fund |
| Keppel South Central (51%) | 626.2 | Keppel Reit |
| Westgate Tower | 600 | Tuan Sing |
| Valley Point and Fraser Suites Singapore (49%) | 328.8 | Mitsubishi Estate |
| Scotts Square retail podium | 310 | Royal Holdings and RB Capital |
| Rivervale Mall | 276 | Buyer linked to Master Contract Services |
| Eastpoint Mall (50.1%) | 239.5 | Link Reit |
| Cuppage Terrace | 175 | Frasers Property |
| Nex (50%, ongoing) | 1,200 to 1,250 (asking) | Not yet named |
| Income Centre (ongoing) | Over 265 | Indonesian party in due diligence |
Figures for ongoing deals are asking, expected or indicative prices. Sources: Savills Singapore, The Business Times.
Where Investors Are Still Looking
The three-month compounded Singapore Overnight Rate Average was 1.3157 per cent on 5 November, about the same as a year ago and well below the roughly 3.3 per cent of November 2024.
CBD Grade A offices yield only about 3 to 4 per cent, so they are most exposed if rates keep rising. Savills notes that 99-year leasehold retail assets typically offer net yields of 4 to 5 per cent, while industrial properties with 20 to 25 years of lease left can offer 6 to 6.5 per cent. Colliers sees continued interest in hospitality, co-living and logistics. Savills adds that activity could pick up in the first half of 2027 if large office deals such as One Raffles Place and Frasers Tower are completed.
Frequently Asked Questions
How much real estate was sold in Singapore in 2026?
Savills projects total investment sales of about S$55 billion for 2026, a record.
What is the forecast for 2027?
Savills expects between S$35 billion and S$45 billion, mainly because of higher borrowing costs and pricing gaps.
Which property types are seen as more resilient?
Retail and industrial assets, which offer higher yields than Grade A offices, along with hospitality, co-living and logistics.
What happened to the Marina One deal?
A S$5.7 billion sale of its commercial component had been expected in August, but market talk in early October was that it would not proceed.
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