Singapore
Commentary on the flash estimate of Q1 2025 private residential property price index
April 1, 2025
Associated Contact
Head of Marketing & Communications, Singapore
While primary sales have held firm on the back of strong take-up at a slew of attractive new launches amid lower interest rates, secondary sales have slowed as buyers gravitated to new launches in Q1 2025.
Based on caveats downloaded from realis on 1 Apr 2025, 3,330 new private homes (excluding ECs) were sold in Q1 2025, declining by 2.6% from Q4 2024’s bumper 3,420 units. On the other hand, secondary sales including resale and subsales saw a more drastic fall of 24.2% q-o-q from 4,013 units in Q4 2024 to 3,042 units.
URA Q1 2025 flash
Flash estimates show that private home prices rose 0.6% q-o-q in Q1 2025, moderating from the 2.3% q-o-q increase in Q4 2024.Q1 2025’s private home price increase was consistent between landed and non-landed properties, which both posted 0.6% q-o-q growth. This represented a moderation from 3.0% increase in Q4 2024 for non-landed properties but a rebound for landed properties which were down 0.1% in Q4 2024.
While all 3 non-landed segments – CCR, RCR, and OCR – saw new launches in the quarter which mostly set benchmark prices in their respective locales, the price premiums are now realistic compared to the secondary market. The price performance across non-landed segments was led by the RCR which recorded the largest increase of 1.0% q-o-q, extending its 3.0% q-o-q rise in Q4 2024. This was followed by the CCR where prices grew 0.6% after 2.6% in Q4 2024. Comparatively, the OCR grew a flattish 0.3% q-o-q after a moderate 3.3% growth in Q4 2024.
• The CCR saw the new launch of Aurea, the residential component of Golden Mile Complex’s redevelopment. The 188-unit project sold 23 units in its launch weekend in early March at an average price of $3,005 psf. CCR price growth could have been tempered by discounts offered at existing projects such as One Bernam (351 units) which adjusted prices to clear remaining unsold inventory and is now 100% sold after 102 units were sold in Q1 2025 at a median price of $2,523 psf.
• In the OCR, new launches Elta in Clementi and Parktown Residence in Tampines set new benchmark prices in their respective neighbourhoods which have not seen new supply in at least 5 years. Elta sold 65% of its total 501 units at its launch weekend in February 2025, at an average price of $2,537 psf, while Parktown Residence, an integrated development in Tampines North, sold over 87% of its 1,193 units at an average price of $2,360 psf. The sixth Lentor project, Lentor Central Residence, sold 93.3% of total 477 units at an average price of $2,200 psf, a price that is seen as comparable with Lentor projects launched two years ago.
Outlook
Buying appetite appears to have returned since Q4 2024 amid lower mortgage rates and economic recovery, anchored by attractive OCR and RCR projects at reasonable price quantums. While Q1’s new sales have held up, mainly on attractive OCR and RCR projects, most new launches for the rest of 2025 will be in the CCR, which have higher price points and may not generate the same kind of volumes. With most pent-up demand in the suburbs and city fringe realised, pricing and design will be crucial for the upcoming new launches to continue this momentum. We thus maintain our full year new home sales to be 7,000 – 8,000 units, signalling a slowdown in new home sales in the next few quarters, but nonetheless still an improvement from 2024’s 6,469 units on easing interest rates and good pipeline of launches.
With Singapore’s GDP growth expected to moderate over 2025 against the backdrop of ongoing global trade frictions, geopolitical tensions and economic policy uncertainty, we narrow our full year home price increase to 3-4% (from 3-6%), to signal a flat to marginal easing from the 3.9% growth in 2024. Home prices are likely to still grow in 2025 supported by strong household balance sheets, lower interest rates, and continued upgrading aspirations.
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