Private home sales slide 64% in Q2, but prices remain resilient

Despite the decline in transactions, prices across the residential, office, and retail sectors largely held steady or rose slightly,

Singapore’s property market slowed noticeably in the second quarter of 2025, as new private home sales dropped sharply and office rents fell for the first time in nearly four years.

Despite the decline in transactions, prices across the residential, office, and retail sectors largely held steady or rose slightly. In the residential market, new home sales fell by 64.1% QoQ to just 1,212 units. The drop was attributed to a pullback in project launches and lingering economic uncertainty.

Huttons Asia added that global events, such as the U.S. tariff announcements in April, added to buyer caution. Whilst volumes dipped, prices remained resilient.

Private home prices rose 1.0%, led by a 3.0% jump in Core Central Region (CCR) values, whilst resale activity recorded a 2.3% QoQ increase in transaction volume.

Rents rose by 0.8% overall in Q2, with stronger demand in the Core Central Region (CCR) pushing rents there up by 1.8%. Looking ahead, Knight Frank and Realion forecast full-year private home price growth of 3–5%, whilst Huttons projects a slightly higher 4–7%.

Most consultants expect new home sales to finish the year between 7,000 and 9,000 units, barring any major economic shocks.

The office market showed clear signs of pressure, as URA’s Office Rental Index slipped 0.3% in Q2, reversing its Q1 gain. This marks the first annual decline in rents since 2021, according to Knight Frank. CBRE and Colliers echoed the softness, attributing it to cautious sentiment, firms delaying relocations to conserve capital, and weak external conditions.

Yet despite the dip in rents, office vacancy remained tight, with CBRE noting a decline from 11.7% to 11.0% and Knight Frank reporting a slight rise in island-wide occupancy to 88.6%.

The Grade A CBD segment showed some resilience—CBRE reported a 0.4% uptick in rents to $12.10 psf/month, underpinned by a flight to quality. Both CBRE and Colliers expect rental growth to stabilize, supported by limited supply through 2027 and selective tenant upgrades.

In the retail sector, rents grew steadily, with URA data showing a 0.9% quarter-on-quarter increase in the Central Region. CBRE and Cushman & Wakefield attributed this to recovering tourism, robust foot traffic, and limited new supply.

However, Knight Frank highlighted growing strain on F&B operators, with operating costs hitting a record $12.3b in 2023. Vacancy rates also ticked up, with CBRE reporting a rise from 6.6% to 7.0%.

Despite this, consultants expect retail rents to continue climbing slowly, potentially returning to pre-pandemic levels by the end of the year.

The HDB resale market saw price growth taper to 0.9% in Q2—the smallest quarterly gain since mid-2020—according to PropNex. Nonetheless, transaction volumes rose 7.8% to 7,102 units, the highest in three quarters.

PropNex expects 2025 to end with 27,000 to 28,000 resale flat transactions and price growth of 4–5%, down from nearly 10% last year. The million-dollar flat trend also accelerated, with 415 such units sold in Q2 and the 2024 record expected to be surpassed before Q4.

Overall, consultants remain cautiously optimistic. Whilst global uncertainty and high interest rates continue to dampen sentiment, prices are holding firm due to tight supply, buyer resilience, and strong interest in prime locations.

Most firms—including Knight Frank, Huttons, CBRE, and Realion—expect full-year home price growth of 3–5% and a pickup in sales activity in the second half as developers push out new launches.