property market trends Singapore 2025

Blog
June 14, 2025

🏠 1. Private Residential Market: Growth Cooling, Supply Tightening

Price momentum is easing.
Private home prices rose only 0.8 % in Q1 2025, compared to 2.3 % in Q4 2024 — a clear sign of moderation plbinsights.comstraitstimes.com.

Landed homes up 0.4% (from -0.1% previously).
Non‑landed homes increased 1.0% (versus 3.0% before).
Rental growth also slowed, up just 0.4% in Q1 (no change in Q4) ura.gov.sg.

Supply remains constrained.
Projected completions for 2025 are around 7,200 private units, while confirmed land‑sale list batches supply some 5,030 units in 1H alone — about 60% more than 2021–23 averages ura.gov.sg. Yet, this is still well below the decade norm of ~12,000 new units per year — only ~5,300 expected in 2025 en.wikipedia.org+11darrenong.sg+11stackedhomes.com+11.

Demand remains resilient.
With many HDB households reaching their Minimum Occupation Period (MOP), a steady stream of buyers are upgrading to private homes. CPF savings and accumulated equity support this trend reuters.com+5darrenong.sg+5plbinsights.com+5.

2. HDB & Public Housing Market: Prices Surge, Cooling Likely

Resale flat prices jumped ~9.6 % in 2024, nearly doubling from 2023’s 4.9% gain .

Volume of resale transactions climbed ~8%.
Borrowing limits were tightened: max LTV dropped from 80% to 75%.
Analysts warn high‑price buyers to be prudent; further cooling measures are on the radar mordorintelligence.com+11reuters.com+11cbre.com.sg+11.

MOP dynamics.
The number of flats reaching MOP dropped sharply from ~30,920 in 2022 to ~6,974 in 2025 — the lowest since 2014. That supply is expected to recover to ~13,500 by 2026 and ~19,500 by 2028 stackedhomes.com. Fewer eligible resale flats have tightened supply and fuelled price escalation.

3. Launch Activity & Developer Sentiment

Launches holding steady.
About 3,139 uncompleted private homes (excluding ECs) were launched in Q1 2025; 3,375 units sold. For ECs (executive condominiums), 760 units were launched and 830 sold reuters.comura.gov.sg.

Developer outlook improving.
CBRE notes that mortgage rates easing have bolstered buyer appetite, encouraging developers to bring more new projects in 2025 cbre.com.sg.

4. Investment & Commercial Activity

APAC commercial real estate to expand 5–10% Y‑o‑Y in 2025, with Singapore among the main drivers .

Offices: Demand for prime-grade space remains high. Flight‑to‑quality trends continue, pushing occupiers to upgrade .
Retail and logistics: Retail rents recuperating as consumer confidence returns; prime assets in demand, secondary spaces lag. Logistics growth keeping pace, albeit conservatively cbre.com+1asiapropertyawards.com+1.
Hotel sector: Tourism is expected to fully rebound in 2025, supporting modest growth in RevPAR cbre.com.

Green-certified, ESG-strong buildings are gaining favor from institutional investors, reinforcing a structural shift in commercial property preferences .

5. Macro Headwinds & Policy Environment

Economic growth slowing.
URA forecasts 2025 GDP growth between 0–2%, down from 4.4% in 2024 ura.gov.sg. Global economic pressures and trade slowdown are key drag factors.

Interest rates easing, but still high.
While policy rates have eased from late‑2023 highs, they remain elevated compared to the prior decade ura.gov.sg. CBRE expects modest rate cuts in Asia‑Pacific, including Singapore en.wikipedia.org+3cbre.com.sg+3ura.gov.sg+3.

Government interventions remain active.
Cooling measures are still on the table, especially for HDB resale market. Tighter loan rules and supply controls via GLS are key tools darrenong.sg+4reuters.com+4ura.gov.sg+4.

6. Market Forecast & Indicators

Private residential prices: Growth cooling to ~1%–2% annually.
Rental market: Soft, especially in non-prime areas; CCR remains relatively stable.
Investment volume: Commercial real estate investment expected to grow 5–10% in 2025 grandviewresearch.com+5ura.gov.sg+5plbinsights.com+5.
Development supply: 2025 completions under-supply, but 2026–27 pipeline may ease tightness .

7. What Buyers & Investors Should Know

For Residential Buyers

Budget with stress in mind — assume interest rates stay elevated.
Monitor HDB resale prices — further cooling and government follow-up measures likely.
Prioritize location & product — prime, well‑connected homes offer more stability.

For Property Investors

Mixed-tranche portfolios of residential, office and logistics offer balanced protection.
ESG/commercial plays are gaining momentum—seek green-certified assets.
Be selective on timing — first‑half 2025 may offer more value as sentiment stabilises.

For Developers

Prime office-retail-logistics sites outperform secondary locations.
New launches should align to slower buyer pace and finance conditions.
ESG focus adds premium appeal, especially to institutional capital.

8. Outlook: 2025 & Beyond

Residential: Expect price deceleration in 2025 (~1%–2%) with mild rental uptick. Growth may pick up in 2026–27 if supply pipeline eases and demand persists.

Commercial & Investment: Robust investment activity continues. Supply-demand balance favors prime assets. ESG-certified properties and hospitality benefitting from tourism recovery.

Public Housing: Resale prices likely plateau as more flats hit MOP, but affordability remains a concern with high valuations and tight LTV limits.

🔍 Summary Table

Segment	2025 Outlook	2026+ Trends
Private Homes	Price growth ~1%–2%, rental softening	Supply pipeline eases, moderate rebound
HDB Resale	Prices stabilising, cooler borrowing	More flats entering resale supply
Commercial	Investment +5–10%, flight-to-quality	Weak secondary spaces, ESG outperformance
Hotel & Retail	Hotel RevPAR improving; retail slowly	Consumption rebound, retail recovery

Final Take

In 2025, Singapore’s property market is in a phase of transition — with residential growth cooling, rental prices softening, but commercial and investment momentum staying strong. Buyers and investors should balance caution with opportunity, focusing on quality assets, aligning with broader economic trends, and watching policy moves carefully.

Important Link

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