The Urban Redevelopment Authority’s (URA) latest statistics for Q1 2025 indicate a moderate increase in Singapore’s residential property prices, with the All Residential Price Index rising by 0.8% quarter-on-quarter (q-o-q) and 3.3% year-on-year (y-o-y). Leonard Tay, Head of Research at Knight Frank Singapore, attributes this growth to sustained homebuyer activity from late 2024, despite a more subdued increase compared to the previous quarter.
The Rest of Central Region (RCR) experienced the highest price growth, with a 1.7% q-o-q and 7.3% y-o-y increase, largely driven by the launch of The Orie in Toa Payoh. Meanwhile, the Core Central Region (CCR) saw a 0.8% q-o-q and 1.9% y-o-y rise, despite the 60% Additional Buyer’s Stamp Duty affecting foreign buyers. The Outside Central Region (OCR) showed a slight 0.3% q-o-q increase, with strong demand for new launches like Lentor Central Residences and Parktown Residence.
In the office sector, rental growth was modest at 0.3% q-o-q, with occupancy levels decreasing to 88.3% due to new completions like Keppel South Central. The retail sector remains challenging, with rents falling by 0.5% q-o-q amidst high operational costs and an oversaturated food and beverage market.
Despite global economic uncertainties, Tay notes that domestic demand remains robust, supported by strong household balance sheets and low unemployment. However, the ongoing US-led tariff war could impact transaction volumes, as buyers and sellers adopt a cautious approach. Knight Frank anticipates moderate price growth of 3% to 5% for 2025, similar to 2024.
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