Although full-year transaction volumes remained robust, the Urban Redevelopment Authority’s 4Q 2025 data signals a cooling turn in Singapore’s private residential market. Sales momentum is easing, price growth is moderating, and rental conditions are softening against a backdrop of constrained new supply.
Overall private residential sales volume fell 9.5% quarter-on-quarter to 6,699 units. New sales declined 10.6% to 2,940 units on the back of fewer launches. Resale transactions slipped 9.1% to 3,529 units, and sub-sale activity eased 2.1% to 230 units.
Overall private home sales slipped in 4Q 2025, as new launches slowed and resale activity softened
Despite the quarter-on-quarter pullback, full-year 2025 sales reached 26,492 units, a 20.7% year-on-year increase. This underscores the strength of demand accumulated earlier in the year.
Price dynamics reflected a clear deceleration. The private residential price index rose 0.6% quarter-on-quarter in 4Q 2025, marking a fifth consecutive quarter of increase but bringing full-year growth to 3.3% year-on-year. This is the slowest annual expansion since 2020. Landed residential prices registered particularly strong gains, rising 3.4% quarter-on-quarter and 7.6% year-on-year, the fastest pace since 4Q 2023.
A divergence emerged between segments, as landed residential prices climbed 3.4% quarter-on-quarter and 7.6% year-on-year. Meanwhile, non-landed prices slipped 0.2% quarter-on-quarter—their first decline in nine quarters—although they still registered a 2.3% gain for 2025.
Regionally, performance was uneven. Prices in the Core Central Region fell 3.5% quarter-on-quarter, whereas the Rest of Central Region recorded a 0.7% increase, and the Outside Central Region rose 1.0%. The OCR led annual growth at 3.2% year-on-year, compared with 1.9% in the CCR and 1.6% in the RCR.
These patterns indicate relatively more resilient mass-market demand and a more pronounced correction in prime segments. However, foreign investment in the luxury market has provided some price resilience in premium segments, driven by global economic uncertainty and Singapore’s stable governance.
Rental indicators suggested softening conditions after a brief recovery. Private residential rents grew 1.9% year-on-year in 2025, reversing a 1.9% decline in 2024. However, the rental index dipped 0.5% in 4Q 2025 after three quarters of growth. The rental market is expected to see modest growth in 2026, with rents forecast to rise between 0–2% as the market remains relatively tenant-favourable.
Non-landed rents rose 2.3% year-on-year, led by the CCR at 2.5% and RCR at 2.8%. Rents in the OCR increased 1.3% year-on-year. However, landed rents fell 3.0% quarter-on-quarter and non-landed rents edged down 0.1%, reflecting easing pressure amid improving vacancy.
Launch activity and inventory trends highlighted supply constraints. Six new private residential projects entered the market in 4Q 2025 with 2,766 units, compared with nine launches and 4,146 units in the preceding quarter, contributing to a 10.6% quarter-on-quarter decline in new sales.
Nonetheless, new sales for 2025 surged 67.2% year-on-year to 10,815 units, and demand absorption remained healthy. 62.5% of major new launches sold more than half their units in the launch month.
Unsold inventory of uncompleted units fell 12.7% quarter-on-quarter to 14,859 units, reinforcing the narrative of tight forward supply.
Completions remained modest. In 4Q 2025, 2,018 private residential units were completed—a 13.8% increase quarter-on-quarter. Full-year completions totaled 6,123 units, which was 28% lower than in 2024.
A further 6,083 units are expected to be completed in 2026, suggesting continued supply discipline.
The stock of occupied units rose by 5,027 in the quarter. The islandwide vacancy rate improved to 6.0% from 6.9% in 3Q 2025, indicating demand continued to absorb available stock even as headline rents eased.
Vacancy metrics across sub-markets pointed to broad-based tightening. Vacancy rates moderated to 8.8% in the CCR, 6.0% in the RCR, and 4.9% in the OCR.
Private residential vacancy was reported at 10.7% in 4Q 2025. This reflects ongoing leasing take-up and limited new completions.
Looking ahead, new home sales in 2026 are projected to be in the range of 7,500 to 8,500 units.
Steady upgrader demand and lower interest rates are cited as supporting factors.
Even so, buyer caution, evidenced by moderated price growth and selective take-up, signals a more measured phase of market activity.
