Home prices grew modestly as demand held steady in Q1 2025

Property price index rose by 0.8% in Q1 2025.

Demand for new private homes remained strong in the first quarter of 2025 (Q1 2025), with new prime residential sales reaching a one-year high, according to OrangeTee. 

Despite this, overall private home prices posted slower growth.

According to data from the Urban Redevelopment Authority (URA), the property price index rose by 0.8% in Q1 2025, down from 2.3% in the previous quarter. 

This was mainly due to smaller price gains for non-landed homes, which increased by 1%, compared to 3% in Q4 2024. 

Landed property prices, however, rebounded by 0.4% after a slight 0.1% decline previously.

“The slower price growth may also be attributed to an increased market share of suburban homes, which are typically sold at lower prices compared to other properties in city fringe and prime areas,” an OrangeTee report added.

The share of sales in the Outside Central Region (OCR) climbed from 47.3% in Q4 2024 to 58.2% in Q1 2025, whilst the Rest of Central Region (RCR) fell from 42.1% to 29.3%. 

Sales in the Core Central Region (CCR) rose slightly to 12.4%.

By segment, non-landed home prices in the OCR rose by 0.3%, a sharp slowdown from 3.3% in the previous quarter. 

CCR prices increased 0.8%, down from 2.6%, whilst RCR prices grew by 1.7%, easing from 3%.

Total private home sales (excluding executive condominiums) fell by 2.3% to 7,261 units in Q1 2025 from 7,433 units in Q4 2024. 

Resale transactions dropped by 3.7% to 3,565 units, affected by heightened competition from new launches. 

New home sales slipped marginally by 1.3% to 3,375 units. This marked the second-highest quarterly performance in three years, supported by strong uptake at Parktown Residence (1,193 units), The Orie (777 units), and ELTA (501 units).

New home sales in the prime CCR market rose to 192 units in Q1 2025, up 40.1% quarter-on-quarter and 81.1% year-on-year, making it the strongest showing since Q4 2023.

One Bernam led with 102 units sold, followed by Aurea with 24 units. Other notable projects included The Collective at One Sophia, Hill House, and 19 Nassim.

High-end transactions above $5m dipped slightly to 102 units from 107 in the previous quarter, but deals above $10m rose from 13 to 17 units.

Looking ahead, trade tensions and a prolonged high-interest rate environment may weigh on buyer sentiment. 

Singapore’s export-driven economy is exposed to risks from potential U.S. tariff actions, which could dampen GDP growth and prompt more caution amongst homebuyers. 

Nonetheless, stable employment, continued HDB resale strength, and growing income levels may help sustain demand, especially from local upgraders. 

“The pipeline supply of private residential units and EC completions will rise from 7,968 units in 2026 to 12,392 units in 2028,” said Christine Sun, Chief Researcher and Strategist at OrangeTee.

“The increasing housing supply may mitigate a substantial rise in home prices over the next few years,” she added.