As Singapore’s residential property market evolves into a more mature phase in 2025, housing prices continue their upward trajectory, albeit at a more moderate pace than observed in preceding years. The Housing Index rose to 210.70 points in Q1 2025 from 209.40 points in Q4 2024, reflecting the market’s shift from rapid price escalation to more balanced growth.
Despite reaching an all-time high of 211.50 points in Q1, the rate of appreciation demonstrates measurable moderation compared to previous quarters. The private property sector shows clear signs of price growth moderation, with HDB resale price index growing by just 1.5% in Q1 2025, a notable decrease from the 2.6% growth recorded in the previous quarter. This represents the lowest growth rate in the past five quarters while extending the streak of consecutive quarterly increases to 20. This moderation occurs despite the strong home ownership rate of 89.70% indicating persistent demand in the market.
The market’s cooling is evident as Q1 growth slows considerably from previous quarters’ rapid appreciation rates.
Market analysts project private property prices to increase by 4-7% throughout 2025, indicating continued appreciation within more sustainable parameters. Trading Economics forecasts the Singapore Housing Index to settle at 207.00 points by the end of Q2 2025, suggesting minor adjustments as the market stabilizes.
The residential real estate market valuation is estimated to reach US$1.56 trillion by year-end, supported by strong but measured demand amid favorable economic conditions. Falling interest rates create an advantageous environment for property purchases, while the introduction of over 11,000 new launch condo units provides expanded options for prospective buyers and investors.
Supply-side factors are playing an essential role in moderating extreme price growth, with statements indicating flat prices will stabilize as more units reach their Minimum Occupancy Period. The market is characterized by this delicate balance between steady demand and increased housing supply, creating what industry observers describe as a transformative year for Singapore’s property landscape. Government concerns regarding the rapid rise of HDB resale prices may lead to additional cooling measures to maintain affordability for first-time homebuyers.
Econometric models project the Housing Index to trend around 241.00 points by 2026, suggesting continued long-term appreciation despite the current moderation. This represents a significant increase from the historical average of 90.33 points recorded since 1975, underscoring the sustained value proposition of Singapore’s residential property market.
