As Singapore’s private residential property market continues to evolve through 2025, analysts are projecting sustained growth rates of 3-4% annually, closely mirroring the 3.9% increase observed in 2024. Some market specialists have adopted a more bullish stance, forecasting potential price appreciation in the 4-7% range, reflecting continued demand despite moderating market conditions. The renewed confidence observed since late 2024 has been a significant factor in maintaining market momentum.
Singapore’s property market shows resilience with projected 3-4% annual growth, while bullish forecasts suggest up to 7% appreciation despite moderating conditions.
Recent data from the Urban Redevelopment Authority substantiates this outlook, with the Property Price Index for all private homes registering a 0.81% quarter-on-quarter increase and a 3.33% year-on-year gain in Q1 2025.
Non-landed properties have emerged as the primary growth driver, demonstrating a 0.95% quarterly increase and an impressive 4.74% annual appreciation, while landed properties experienced a modest 1.3% year-on-year decline. The stabilizing prices reflect the market’s transition toward more sustainable growth patterns, as predicted in earlier forecasts. The market is maintaining momentum through new project launches in fringe and suburban areas, which continue to attract substantial buyer interest despite increased supply levels.
Sales volumes are anticipated to reach 8,000–9,000 new homes and 14,000–15,000 resale units throughout 2025.
The favorable economic environment underpins market resilience, with Singapore projected to achieve approximately 2.8% GDP growth in 2025. Lower mortgage rates, which have decreased from approximately 4% to 2.5–2.6% following Federal Reserve cuts in late 2024, have substantially improved affordability metrics for prospective buyers, potentially saving homeowners around S$800 monthly on a S$1 million loan.
Supply-side dynamics remain significant, with over 11,000 new condominium units expected to enter the market during 2025. Despite this substantial inventory addition, prices remain resilient due to elevated construction costs, firm land prices, and sustained buyer demand.
Developers have maintained cautious yet stable bidding strategies for land acquisitions, maneuvering tightening profit margins while establishing benchmark pricing through well-located new projects. The HDB resale market is showing even stronger performance, with prices expected to increase by 3-5% range throughout 2025, outpacing the growth in the private condominium sector. The market exhibits maturation toward more balanced conditions, characterized by moderate, sustainable growth rather than rapid price escalation, although global geopolitical tensions and trade concerns represent potential downside risks to continued appreciation.
