Singapore’s Property Fever
Although Singapore’s private residential property price index has climbed to approximately 215 in Q3 2025—the highest level since records commenced in 1975—and is more than double the historical average of 91.55, the city-state’s housing market continues to demonstrate remarkable resilience amid elevated valuations.
Singapore’s property price index hits record highs, more than doubling historical averages while the market shows no signs of cooling.
Projections indicate further price growth of 3–5% in 2025, with the index expected to trend toward 231 in 2026 and 241 in 2027. This reinforces the perception of property as a long-term store of value, despite affordability ratios reaching approximately 16.9 times the annual median household income for private homes.
Transaction volumes have exhibited considerable momentum. In Q1 2025, 7,261 private units were sold, representing a 71.7% year-on-year increase as buyers responded to easing interest rates. Q3 2025 sustained this trajectory with 7,404 units transacted, marking a 37.8% year-on-year gain.
Primary new home sales in Q1 2025 reached 3,375 units, nearly tripling the 1,164 units recorded in Q1 2024. This indicates a strong market response to fresh launches. Industry forecasts from CBRE project 7,000–8,000 new private homes sold in 2025, while PropNex estimates 8,000–9,000 primary sales alongside 14,000–15,000 resale transactions.
The demand dynamics underpinning these figures reflect structural factors including new household formation estimated at over 20,000 annually, rising HDB resale prices that have narrowed the price gap for upgraders into private condominiums, and strong household balance sheets supported by low unemployment rates. Adding to this upgrader demand, over 100,000 HDB flats reached their Minimum Occupation Period between 2019 and 2023, creating a substantial pool of potential buyers entering the private market. The HDB Resale Price Index increased by 2.7% quarter-on-quarter in Q3 2024, further fueling upgrader interest in private properties.
Property continues to be viewed as a store of wealth particularly among baby boomers and as a hedge against inflation.
Price growth has nonetheless moderated, with flash estimates showing 0.5% quarter-on-quarter private home price appreciation in Q2 2025, down from 1% in Q1. The private residential price index recorded 0.81% quarter-on-quarter and 3.33% year-on-year growth in Q1 2025.
Non-landed properties outpaced landed segments with 0.95% quarterly and 4.74% annual gains.
Government cooling measures, including higher Additional Buyer’s Stamp Duty and tighter loan-to-value limits, remain in place targeting speculative purchases and multiple-property ownership. Properties with BCA Green Mark certification are increasingly commanding 3-5% higher premiums, reflecting growing environmental consciousness among buyers.
Whether this sustained appetite for property represents prudent capital allocation or reflects a deeper cultural fixation remains subject to interpretation.
