Singapore Property Market Posts Moderate Growth Amid Global Volatility

Private Home Price Growth Slows to 0.8% in Q1, Slightly Above Flash Estimates as Full-Year Outlook Stabilises

In the first quarter of 2025, Singapore private home prices continued their modest growth, edging up 0.8% quarter-on-quarter. This was slightly higher than the flash estimate of 0.6%, but marked a notable deceleration from the 2.3% gain in the fourth quarter of 2024. Meanwhile, the rental market remained stable, with analysts expecting a moderate and steady performance across the full year.

Rational Pricing for New Launches as Price Growth Eases Across All Three Segments

According to the quarterly real estate statistics released by the Urban Redevelopment Authority (URA) on 25 April, landed home prices inched up 0.4% in Q1, reversing the 0.1% decline in the preceding quarter. Non-landed private home prices rose 1.0%, though growth moderated from the 3.0% recorded in the previous quarter.

The Rest of Central Region (RCR) led the gains with a 1.7% increase, largely driven by robust sales at The Orie in Toa Payoh. Prices in the Core Central Region (CCR) posted a mild 0.8% rise, while mass-market homes in the Outside Central Region (OCR) registered the smallest increase at just 0.3%.

With new launches debuting across all three market segments in the first quarter, several achieved benchmark prices for their respective localities. However, their premiums relative to the resale market remained sensible, which served as a key pillar supporting buying momentum.

For instance, The Orie—the first new condo launch in Toa Payoh in years—transacted at an average of $2,729 psf, effectively unlocking pent-up demand from genuine local buyers and upgraders.

Steady Supply Injections to Balance Market Pressures

The government has been steadily ramping up private housing supply, which is expected to cushion upward price pressures over the coming years.

Between Q2 and Q4 2025, an estimated 5,187 private residential units (including Executive Condominiums, or ECs) are projected for completion, followed by 7,968 units in 2026, and more than 16,856 units from 2028 onwards.

Knight Frank noted that, supported by healthy household balance sheets, low unemployment, and intergenerational wealth transfers, overall private home prices are still expected to grow by 3% to 5% this year.

Global Uncertainties Linger: Prudence Advised for Buyers

The URA report also cautioned that uncertainties surrounding international trade dynamics and elevated interest rates persist, urging households to remain prudent when committing to property purchases and mortgage debt.

While geopolitical tensions could weigh on market sentiment in the short term, long-term trends will require further observation. With the bulk of upcoming launches situated in prime CCR and RCR locations commanding higher price tags, whether they can sustain previous robust take-up rates remains to be tested by the market.

Rents Stabilise; Full-Year Growth Capped at 3%

In the leasing market, overall private residential rents edged up 0.4% in Q1, improving slightly from the flat performance in Q4 2024. Over the past four quarters, rental fluctuations have hovered within a narrow band of ±1%, signalling that the leasing market has largely plateaued.

Vacancy rates for smaller units remain relatively high, suggesting landlords may need to moderate rental expectations. Conversely, three- and four-bedroom units continue to see resilient leasing demand. However, should corporate hiring of foreign professionals soften, rents could face headwinds.

Nonetheless, Singapore’s safe-haven appeal remains intact. Some ultra-high-net-worth individuals (UHNWIs) may choose to lease luxury homes in the prime core central area, which is poised to support rental performance in the high-end segment.