Private home sales seen rising in Q2 with new launches

This follows a solid first quarter where private new home sales (excluding executive condominiums) reached 3,387 units.

Singapore’s private residential market is expected to see stronger performance in the second quarter of 2025, supported by a pipeline of new project launches and a low base from the same period last year.

Analysts at CGS International noted, “We expect 2Q25F home sales to remain higher year-on-year due to upcoming new launches and low base in 2Q24.”

This follows a solid first quarter where private new home sales (excluding executive condominiums) reached 3,387 units, nearly three times higher than Q1 2024.

The figure places the market on track to meet the upper end of CGS’s annual sales forecast of 7,000 to 8,000 units.

The positive momentum was driven by launches such as One Marina Gardens, which achieved a 40% take-up rate for its 937 units. Developers are now turning to launches like Bloomsbury Residences and Upper House @ Orchard to carry the trend forward into Q2.

Price growth remained steady. According to the Urban Redevelopment Authority’s flash estimates, private home prices rose by 0.6% quarter-on-quarter in Q1 2025, easing from a 2.3% increase in Q4 2024.

Price gains were led by the Rest of Central Region, which saw a 1% rise, followed by a 0.6% increase in the Central Region and a 0.3% uptick in suburban areas. CGS continues to forecast a full-year price increase of between 0% and 3%.

Despite a more favorable interest rate environment, CGS maintains a Neutral rating on the property sector. It cites cautious buyer sentiment linked to a slower macroeconomic outlook, especially for high-value purchases like housing.

Valuations across developers remain compelling, with Singapore developers trading at a 58% discount to revised net asset value and 0.52 times FY25F price-to-book. CGS’s preferred sector picks are UOL Group, Capitaland Investment, and City Developments, based on balance sheet strength, asset redevelopment potential, and visible earnings pipelines.