Singapore’s real estate market experienced a significant shift in Q2 2025, with residential sales plummeting by 64.1% compared to the previous quarter, according to the Urban Redevelopment Authority (URA). The decline, from 3,375 units in Q1 to 1,212 in Q2, was attributed to fewer project launches and reduced homebuyer activity. Despite this, the URA All Residential Price Index rose by 1.0% quarter-on-quarter, reflecting a resilient pricing environment.
In the Core Central Region, prices increased by 3.0% quarter-on-quarter, driven by new sales from developments like 21 Anderson. Leonard Tay, Head of Research at Knight Frank Singapore, noted a shift in buyer sentiment, with more homeowners willing to negotiate prices amidst global political and economic uncertainties. “Local homebuyers are expected to support activity in the prime home market segment,” Tay stated.
The office sector saw a slight decline in rental rates, with a 0.3% drop in Q2 2025. Occupancy levels rose marginally to 88.6%, though rents remained stable due to ongoing trade tensions. Knight Frank’s survey highlighted that 37.7% of global corporates prioritise enhancing operational efficiency amidst economic headwinds.
Retail space rents grew by 0.9% quarter-on-quarter, despite challenges such as rising operating costs and labour constraints. The food and beverage sector, in particular, faced intense competition, with operating expenditure reaching a record S$12.3b in 2023.
Looking ahead, the real estate market faces challenges from protectionist trade policies and geopolitical tensions. However, new launches and local demand are expected to sustain moderate growth in the residential sector, whilst the office and retail markets navigate an uncertain global landscape.
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