Most buyers expect private home prices to stay firm

55% of respondents said they are motivated or very motivated to enter the property market.

More than three-quarters of prospective homebuyers in Singapore do not expect private home prices to fall in the next 12 months, according to the PropNex Homebuyer Sentiment and Preferences Report 2025.

The survey, which polled over 1,100 respondents, found that 76.6% are not anticipating a price drop, reflecting continued confidence in a resilient property market despite global economic uncertainty and cooling measures.

This figure, though slightly down from 83.4% in 2023, suggests that most buyers believe structural factors such as limited supply, high construction costs, and firm land prices will keep prices elevated.

Falling interest rates are also playing a key role in keeping sentiment buoyant. With mortgage rates easing from above 4% in 2023 to around 2.24% as of June 2025, 55% of respondents said they are motivated or very motivated to enter the property market.

About 70% are planning moves in the near term, whether actively searching now or intending to do so within the next six months. PropNex noted that buyers are weighing affordability concerns against the risk of being priced out in the future.

The survey highlights strong price sensitivity amongst buyers. Eight in 10 respondents have a housing budget under $2m, with nearly 28% capping their budget below $1m.

Amongst HDB dwellers, the price-conscious trend is even more pronounced: more than 72% of those living in public housing set their home-buying budget under $1m. Despite these budget constraints, 80.2% of all respondents still aspire to own condominiums or executive condominiums (ECs).

At the same time, there is a growing openness to resale HDB flats, with 12.1% citing them as their preferred option—up from 7.8% in 2023.

This shift could reflect increasing affordability pressures, particularly as the median price of new private homes now hovers around $1.99m, edging close to the top end of many buyers' budgets.

Three-bedroom units remain the most popular choice, favored by 44.5% of respondents, particularly those looking for homes sized between 800 and 1,200 square feet.

Location continues to be a major deciding factor. District 15, which includes Katong and Joo Chiat, was the most preferred area, followed by Districts 19 and 9. Buyers continue to prioritise connectivity, proximity to amenities, and familiarity with the neighborhood, especially those upgrading from suburban areas.

PropNex expects private home prices to rise modestly by 3–4% in 2025, supported by firm land costs and limited new housing stock.