Private home prices in Singapore continued their upward trajectory in the first quarter of 2025, albeit at a slower pace, according to the latest statistics from the Urban Redevelopment Authority (URA). The property price index (PPI) recorded a 0.8% increase, down from the 2.3% growth observed in the previous quarter.
Christine Sun, Chief Researcher and Strategist at OrangeTee, noted that Singapore’s reliance on trade could impact its GDP growth, influencing homebuyer sentiment. Despite these challenges, domestic buyers, particularly HDB upgraders, continue to drive the market. The government’s efforts to increase housing supply through land sales and upcoming completions are expected to moderate home price increases in the coming years.
Sales volumes, however, experienced a decline. Private home sales, excluding executive condominiums, fell by 2.3% from 7,433 units in Q4 2024 to 7,261 units in Q1 2025. The resale market also saw a decrease, with volumes dropping by 3.7% to 3,565 units. New home transactions slipped slightly by 1.3% to 3,375 units, marking the second-highest quarterly new sales performance in the past three years.
The rental market showed marginal growth, with private rents rising by 0.4% in Q1 2025. This marks the fourth consecutive quarter of stable rent prices, fluctuating within a narrow range of -1% to 1%. However, the private rental market faces challenges due to macroeconomic uncertainties, including potential global trade wars and tariff headwinds.
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