Private home prices in Singapore increased by 1% in the second quarter of 2025, according to the Urban Redevelopment Authority (URA) property price index. This marks a quicker pace compared to the 0.8% rise in the first quarter.
The growth was primarily driven by higher price gains in the landed segment and the Core Central Region (CCR), where non-landed homes saw a 3% quarter-on-quarter increase, according to Christine Sun, Chief Researcher & Strategist, Realion Group. Notably, several units were sold at prices exceeding S$4,000 per square foot, with transactions including projects like Sculptura Ardmore and Skywaters Residences.
However, the overall sales volume of private homes, excluding executive condominiums, fell by 29.4% from 7,261 units in Q1 2025 to 5,128 units in Q2 2025. This represents the lowest sales volume since Q2 2024. New sale volumes experienced a sharp decline of 64.1%, whilst resale volumes saw a modest rebound of 2.3%. The primary market’s subdued performance was attributed to developers holding back launches during the June school holidays.
Rental prices also saw a slight uptick, with the URA rental index indicating a 0.8% rise in Q2 2025. This marks the fifth consecutive quarter of stabilised rental price changes within a -1% to 1% range. Despite macroeconomic uncertainties, including global trade wars, lower interest rates are expected to support rental market recovery.
Looking ahead, several new projects are anticipated to launch in the latter half of the year, potentially boosting sales transactions. Realion Group forecasts a 3% to 5% increase in prices for the whole of 2025, with 21,000 to 24,000 private homes expected to be transacted. The continued decline in interest rates is likely to enhance affordability, particularly for first-time buyers and investors. However, geopolitical uncertainties may lead to more cautious spending and investment decisions.
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