Demand for new homes in Singapore remained strong in the first quarter of 2025, with prime residential sales reaching a year high, according to a report by OrangeTee.
The number of new private home sales in the Core Central Region (CCR) rose to 192 transactions, marking a 40.1% increase quarter-on-quarter and an 81.1% rise year-on-year.
Private home prices continued to climb for the second consecutive quarter, although at a slower pace.
The Urban Redevelopment Authority’s property price index showed a modest increase of 0.8% in Q1 2025, down from the 2.3% growth in the previous quarter.
This slower growth was attributed to smaller price increments for non-landed properties and an increased market share of suburban homes, which are typically sold at lower prices.
The resale market, however, experienced a decline, with volumes dropping by 3.7% from 3,702 units in Q4 2024 to 3,565 units in Q1 2025.
This was due to heightened competition from the primary market. Despite this, the number of high-end transactions above S$10m increased from 13 units to 17 units over the same period.
Looking ahead, trade tensions and an unpredictable economic landscape may prompt potential homebuyers to adopt a cautious approach. However, the Government Land Sales programme is set to increase the housing supply, with private residential units and executive condominium completions projected to rise from 7,968 units in 2026 to 12,392 units in 2028. This increase in supply is expected to moderate any substantial rise in home prices in the coming years.
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