Private home prices rebound after two consecutive months of correction: Should buyers enter the market now or wait and see?

May Condo Resale Prices Rebound! Is the Property Market Warming Up? Here's What the Data Says

Following two consecutive months of decline, Singapore's private residential resale market has staged a turnaround.

According to the latest data, overall non-landed private residential resale prices rose 1.3% month-on-month in May, underscoring resilient housing demand. However, transaction volumes softened, reflecting that some prospective buyers are adopting a wait-and-see stance ahead of upcoming new project launches.

So, what key market signals do these figures reveal?

Private Resale Prices Rebound from Dips

The 1.3% month-on-month increase in overall private home resale prices in May not only reversed two consecutive months of price corrections, but also registered a 3.7% year-on-year growth.

This increase broadly aligns with prevailing market projections and highlights that the residential market continues to be anchored by genuine owner-occupier demand and local upgraders.

Overall, Singapore's private housing market remains on a stable footing.

Divergent Performance Across the Three Market Segments

A closer look across the different market segments reveals divergent price trends.

CCR (Core Central Region) Leads the Gains

The prime luxury segment emerged as the top performer this month, with resale prices advancing 3.7%.

Following a modest breather in April, the high-end residential market regained buyer interest, demonstrating that appetite among high-net-worth individuals for prime property assets remains resilient.

OCR (Outside Central Region) Remains Steady

Mass-market private home resale prices increased by 1.6%.

Anchored primarily by first-time homebuyers and HDB upgraders, prices in this segment held firm, continuing to serve as the most defensive sector of the market.

RCR (Rest of Central Region) the Sole Segment to Soften

In contrast, city-fringe (RCR) resale prices dipped 0.7%. Having posted a 0.8% increase in April, this month's pullback essentially erased the preceding month's gains.

Market observers suggest that with multiple major new launches slated to debut in the RCR, some buyers have hit pause, resulting in a temporary lull in resale activity.

Drop in Resale Volume Does Not Mean Fading Demand

Private home resale volume contracted 8.9% month-on-month, decreasing from 1,086 units in April to 989 units in May.

However, this does not necessarily suggest a cooling market.

Historically, May is often a quieter period due to the mid-year school holidays and buyers holding out for upcoming major launches. While transaction volume contracted on a monthly basis, it remained 0.7% higher than the same period last year.

In other words, underlying demand remains intact—prospective purchasing power has merely been delayed.

Upcoming Launches Prompt Buyers to Adopt a Wait-and-See Stance

Over the coming months, Singapore will see several closely watched new residential launches, including:

Thomson Reserve

Dunearn House

Lentor Gardens Residences

Lucerne Grand

Amberwood at Holland

Most of these developments are situated in mature estates with excellent connectivity. As a result, many buyers who were initially exploring resale options have held off to compare the pricing and unit layouts of these upcoming launches first.

This hesitation has been a primary contributor to the recent moderation in resale transactions.

Inflow of Supply in Second Half to Heighten Market Competition

Beyond new launches, an estimated 5,371 new private homes are projected to obtain TOP between the second and fourth quarters of this year.

As physical supply expands, buyers will have more choices, which could intensify competition between developers and resale sellers.

For budget-conscious buyers, the resale market may regain appeal thanks to more competitive pricing.

What’s the Outlook for the Property Market in the Second Half?

Synthesising the latest market data, several key factors will shape the private residential market in the second half of the year:

Resilient demand from OCR upgraders
New launch take-up rates serving as a market barometer
Manageable interest rates continuing to support borrowing capacity
Expanding completion supply influencing buyer choices and pricing dynamics

If upcoming major launches achieve robust sales momentum, it will further confirm that underlying demand remains sound. Conversely, slower-than-expected sales could indicate that property prices are testing the limits of buyer affordability.

Conclusion

The May data confirms that Singapore's private housing market is not weakening significantly; rather, it is entering a more rational phase of consolidation.

The price rebound demonstrates that underlying demand remains supportive, while the contraction in transaction volume points to a strategic pause by buyers ahead of new project rollouts, rather than an absence of genuine interest.

With multiple flagship launches set to debut in the second half alongside higher completion numbers, the coming months will be a pivotal window to gauge the direction of Singapore's property market. For prospective homebuyers and investors, now is an opportune time to monitor the market closely and plan ahead.