Private home prices rose by 0.5% quarter-on-quarter in the second quarter of 2025, reflecting a resilient market amid external pressures. This modest increase follows a 0.8% rise in the first quarter of 2025 and a more substantial 2.3% increase in the fourth quarter of 2024, indicating a steady upward trajectory in property values despite challenges facing the real estate sector. The performance of the housing market during this period suggests that buyer confidence remains intact, even as other indicators hint at a more complex scenario.
In the landed housing segment, prices saw a notable increase of 0.7% in the second quarter. This sector’s growth can be attributed to sustained demand for larger, private homes as families seek more space in light of evolving lifestyle needs. Conversely, the Core Central Region (CCR) experienced a significant price surge of 2.3%, largely driven by new premium launches that attracted affluent buyers. Such developments highlight the ongoing appeal of urban living, particularly in well-located areas where amenities and conveniences are readily accessible.
On the other hand, the Rest of Central Region (RCR) faced a contrasting trend, recording a 1.1% price decline. This drop may reflect a shift in buyer interest towards more affordable options or newer developments in other regions, as the market adapts to changing preferences. In the Outside Central Region (OCR), however, home prices increased by 0.9%, buoyed by active resale market activity. This suggests that while new launches may be scarce, existing homes in the OCR continue to attract buyers, contributing positively to the overall market dynamics.
A significant factor influencing the current state of the private residential market is the sharp decline in new private home launches, which plummeted by 55% to approximately 1,420 units in the second quarter of 2025. This reduction in supply could be impacting price stability, as fewer new units may create a sense of urgency among potential buyers, particularly in sought-after locations.
Despite this decline, the overall price growth in the market reflects a resilient response from buyers, who appear willing to invest in property even when faced with limited options. Moreover, external factors have been weighing on market sentiment, yet home prices have maintained slight growth. This resilience is particularly noteworthy given the reduced sales transactions compared to earlier quarters, suggesting that buyers are navigating the market cautiously but are still willing to engage.
The observed trends indicate a complex interplay between supply constraints and ongoing demand, ultimately shaping the landscape of the private residential market in Singapore as it adapts to contemporary challenges. As the market progresses, stakeholders will be keen to observe how these dynamics evolve and what implications they may have for future price movements and overall market health.
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With private home prices rising by 0.5% in 2Q2025, potential residents can look forward to favorable conditions.
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The anticipated launch date is set for 3Q2025, making this an opportune time for investment as the market projects a 3% to 4% price growth for the year.
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News Source: Edgeprop
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