Private home prices in Singapore saw a modest increase of 0.5% in the second quarter of 2025, according to flash estimates from the Urban Redevelopment Authority (URA). This represents a slowdown from the 0.8% growth recorded in the first quarter. The deceleration is largely attributed to smaller price increments for non-landed properties, which rose by 0.5%, compared to a 1.0% gain in the previous quarter. In contrast, landed property prices increased slightly faster at 0.7%, up from 0.4%.
The overall price slowdown is also linked to a 1.1% price drop in the city fringe, or Rest of Central Region (RCR), following a 1.7% rise in Q1 2025. A significant decline in sales transactions, particularly in the primary market, contributed to this trend. New launches fell sharply from 3,139 units in Q1 to fewer than 2,000 units in Q2, impacting overall price growth as new homes typically command higher prices.
Christine Sun, Chief Researcher and Strategist at Realion Group, noted that the proportion of new sale transactions dropped from 46.1% in Q1 to 26.5% in Q2, whilst resale transactions rose from 49.8% to 69.1%. The cautious consumer sentiment, influenced by macroeconomic uncertainties and geopolitical tensions, further dampened market activity.
Looking ahead, the market remains cautious due to ongoing global trade tensions and Middle East conflicts. However, the public housing market continues to support the property sector with positive price growth. Additionally, declining interest rates, as indicated by the Monetary Authority of Singapore, are expected to improve affordability, creating a more favourable environment for first-time buyers and investors.
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