Singapore’s real estate market in the first quarter of 2025 presented a complex picture, with private residential sales volumes reaching a four-year high for a first-quarter performance, despite a 2.3% quarter-on-quarter (qoq) decline to 7,261 units. According to Cushman & Wakefield, this decline follows three consecutive quarters of growth. New sales volumes fell by 1.3% qoq to 3,375 units, whilst resale transactions dropped by 3.7% qoq to 3,565 units. However, subsale volumes rose by 3.2% qoq to 321 units.
The market’s robust performance was highlighted by five out of six major projects launched in Q1 2025 selling over 50% of their units within the launch month. This contrasts with the same period in 2024, where only 40% of major new launches achieved similar sales. Private residential property prices saw a modest increase of 0.8% qoq, a slowdown from the 2.3% growth in Q4 2024, attributed to high-base effects from the previous quarter’s price spike.
In the office sector, Central Region rents grew by 0.3% qoq, reversing two quarters of decline. Despite global economic uncertainties, demand for premium office spaces remains, although cost concerns have tempered tenants’ willingness to pay premium rates. Category 1 office vacancy rates rose to 11.7%, driven by new completions like Keppel South Central.
Retail rents in the Central Region fell by 0.5% qoq, reflecting a two-tier market where prime malls continue to thrive, whilst weaker malls struggle. Orchard Road remains a key retail destination, with new flagship stores and international brands expanding amidst a recovering tourism sector.
Looking ahead, private residential sales volumes are expected to range between 20,000 and 24,000 units in 2025, with prices forecasted to grow by around 3% year-on-year. The office market anticipates stable demand for high-quality spaces, whilst retail faces ongoing challenges in weaker locations.
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