What will drive private home demand and prices in 2025?

For new homes, prices are expected to increase by 2% to 4%.

Private home demand and prices for new and resale units will grow moderately in 2025, experts said.

According to OrangeTee experts, the property market is set to feel the impact of the new US administration.

OrangeTee said the administration’s focus on tax reductions and tariffs and stricter immigration policies could lead to an increase in inflation risks, potentially slowing the pace of interest rate cuts by the Federal Reserve in 2025.

Still, OrangeTee said worries about additional rate hikes have eased.

"Consumers who were previously cautious may now perceive the property market to have reached a pivotal juncture and could be more inclined to re-enter the market since interest rates have declined from their record highs," OrangeTee said.

Domestically, OrangeTee said new property launches will be the primary driver of price increases in the coming year.

2025 will see 24 launches and 11,000 new homes excluding exclusive condominiums, said the expert.

Should developers delay or stagger their launches, 2025 will still see 19 new launches and 8,515 units.

OrangeTee, however, said that most launches next year will be in the suburbs and city fringe areas, where prices tend to be lower.

Given this factor, OrangeTee anticipates new home prices to grow by 2% to 4% and volume to hit between 7,000 and 9,000 units in 2025.

Within the resale market, OrangeTee said more favourable credit conditions will strengthen demand for resale homes, but the decline in inventory available for purchase will push prices up next year.

OrangeTee said private home completions will continue to decrease in 2025, falling from 9,103 units in 2024 to 5,348 units, marking a 41.3% drop YoY.

"There is a strong likelihood that resale prices will experience robust growth as demand is expected to outstrip supply next year," OrangeTee said.

Resale prices are forecast to increase by 4% to 7% in 2025, led by strong suburban demand.