Despite a clear moderation in momentum, Singapore’s private residential market remained broadly resilient in the fourth quarter of 2025, with overall home prices recording a 0.6% quarterly increase and culminating in full-year growth of 3.3%, down from 3.9% in 2024 and the slowest annual pace since 2020. The deceleration in price gains was widely viewed as an adjustment phase, as the market absorbed a substantial increase in new supply against a backdrop of easing interest rates, while buyers displayed greater selectivity and caution.
Singapore’s private home prices rose modestly in late 2025, reflecting cautious demand amid rising supply and easing rates
Within this aggregate picture, segmental divergence was pronounced. Landed residential properties markedly outperformed, registering a robust 7.6% price increase for 2025, compared with a modest 0.9% in 2024, and achieving a 3.4% gain in the fourth quarter alone, the fourth consecutive quarterly rise. This performance was underpinned by a structurally tight stock of landed homes and persistent local demand. This contrasted with the slower overall 3.4% annual increase in private home prices in 2025, the smallest yearly gain since 2020.
By contrast, non-landed prices eased 0.2% in the fourth quarter, the first quarterly decline in nine quarters, largely attributable to a 3.5% fall in the Core Central Region, where prime district values reversed the 1.7% increase posted in the previous quarter.
Non-landed performance across regions was uneven. While the Core Central Region softened, the Rest of Central Region recorded a 0.7% price increase in the fourth quarter, up from 0.3% in the third quarter. The Outside Central Region registered a 1.0% rise, marginally stronger than the 0.8% gain previously, underscoring comparatively greater stability in city-fringe and suburban segments. In contrast, the office sector saw prices fall 0.7% in the fourth quarter and 2.1% for the full year, highlighting softening office market conditions even as the retail segment showed price and rental gains.
Transaction activity remained substantial despite a fourth-quarter cooldown. Developers sold 10,815 new units in 2025, the highest annual volume since 2021 and 67.2% above 2024’s 6,467 units. Even as fourth-quarter new sales moderated to 2,940 units from 3,288 units in the third quarter, overall private residential sales reached 26,492 units in 2025, a four-year high. This was supported by major launches such as Skye at Holland, Zyon Grand, and Penrith. As transaction volumes increased, real estate professionals maintained robust customer due diligence protocols to ensure compliance with anti-money laundering regulations throughout the sales process.
Supply-side expansion shaped market dynamics. Developers launched 11,482 uncompleted units in 2025, up sharply from 6,647 in 2024. During the year, 7,996 units were completed, including 2,018 units in the fourth quarter alone, setting the stage for more intense leasing competition in 2026.
Meanwhile, lower funding costs underpinned buyer confidence. The three-month Singapore Overnight Rate Average stood at 1.14% as of 23 January 2026, its lowest level since July 2022, and two-year fixed-rate home loans were available at about 1.4% to 1.5% annually, far below levels exceeding 4% at end-2022. These conditions supported sales momentum throughout 2025.
Resale and sub-sale activity showed signs of consolidation. Resale transactions in the fourth quarter totaled 3,529 units, down from 3,881 units in the third quarter, yet still accounted for 52.7% of all sales.
Sub-sales edged down to 230 units, indicating slightly reduced speculative turnover even as overall market stability was maintained heading into 2026.
