SINGAPORE, April 7 (Xinhua) -- Singapore's real estate investment sales surged to 15.4 billion Singapore dollars (about 12 billion U.S. dollars) in the first quarter of 2026, up 10 percent quarter on quarter and 166.5 percent year on year, setting a new first-quarter record, global property consultancy Knight Frank's report showed Monday.
The strong start to the year was underpinned by a low-interest-rate environment, which lowered borrowing costs and narrowed pricing gaps, enabling previously stalled transactions to materialize. Investors were also actively repositioning portfolios, selectively divesting assets to recycle capital and fund future acquisitions, further boosting activity, according to the report.
By sector, residential investment sales totaled 4.4 billion Singapore dollars, down 1.8 percent quarter on quarter.
Commercial property led overall activity with 6.3 billion Singapore dollars in transactions, the highest among all sectors, despite a 17.2-percent quarter-on-quarter decline.
Knight Frank noted that momentum from the second half of 2025 carried into 2026, driving the robust start, but the onset of military conflict in the Middle East has reintroduced uncertainty, potentially prompting some investors to adopt a wait-and-see approach.
According to the report, Singapore's reputation as a safe-haven market is expected to sustain investor interest, though capital deployment is likely to be selective, guided by asset-class preferences and yield expectations rather than a broad influx from conflict-affected regions.
Some potential vendors, however, may see current conditions as an opportunity to secure a first-mover advantage, with mid-sized transactions particularly poised to attract available capital given the relatively favorable interest rate environment.
Against this backdrop, Knight Frank maintains its full-year 2026 investment sales forecast at approximately 30 billion Singapore dollars. ■