While Singapore’s private home prices continued their upward trajectory in the first quarter of 2025, the pace of growth has notably moderated across most segments, with prices increasing by 0.8% quarter-on-quarter compared to the more robust 2.3% recorded in the preceding quarter. The Housing Index climbed from 209.40 to 210.70, representing a 3.3% year-on-year increase since Q1 2024, with final growth figures exceeding flash estimates of 0.6%.
Singapore’s housing market maintains its rise but with a gentler climb, showcasing a measured 0.8% quarterly growth.
Landed homes emerged as the standout performer, crossing the $2,000 per square foot threshold for the first time and registering a 3.3% quarter-on-quarter price increase—the fastest since Q3 2022. Despite transaction volume decreasing by 5.3% to 412 units, this segment maintained its strongest first-quarter performance since 2021, fueled by strong income growth, increasing wealth, and declining interest rates. The continued appreciation aligns with earlier projections of 4-7% growth for landed properties in 2025.
In contrast, non-landed residential properties demonstrated more restrained growth at 1.0%, down from 3.0% in the previous quarter. The Rest of Central Region led with a 1.7% price increase, followed by the Core Central Region at 0.8% and the Outside Central Region at 0.3%, with all sub-markets experiencing a deceleration in price appreciation. The Outside Central Region saw new home sales surge by 57% quarter-on-quarter, indicating strong buyer interest in this segment despite slower price growth.
The HDB resale market reflected similar moderation, with prices rising 1.6% quarter-on-quarter, down from 2.6% in Q4 2024, while transaction volume increased by 2.6% to 6,590 units. This represented a 6.8% year-on-year decline, suggesting easing market pressures partly attributable to expanded buyer options through the February 2025 Sale of Balance Flats exercise. The year-over-year picture remains strong with HDB resale prices showing 9.3% growth in April.
Market dynamics continue to be shaped by strong household income growth, local wealth accumulation, and improving affordability through interest rate declines. However, the slowing pace of price growth across most segments suggests a potential turning point for Singapore’s residential market.
Global uncertainties, particularly tariff developments, are influencing buyer sentiment, especially at the premium end, while increased supply alternatives are tempering demand pressures in the resale segment. This combination of factors signals a market potentially evolving toward more sustainable growth patterns.
